Globus Medical Continues To Leverage Innovation To Gain Share And Drive Double-Digit Growth

Globus Medical (NYSE:GMED) has never lacked for vision or ambition – the company was an early mover in spinal robotics at a time when some companies were openly dismissive of the concept, and the company has out-innovated stodgy entrenched players in trauma to generate meaningful revenue growth despite a much smaller R&D budget. Now the company is moving toward the launch of a new imaging system, more tech-integrated product development, and eventual entry into the large joint reconstruction market.

I don’t have any real concerns that Globus will continue to gain share and outgrow the markets it serves. My concern is just what the market is willing to pay for all that. The shares have more or less tracked the med-tech space since my last update, slightly lagging the S&P 500. Valuation now isn’t bad, and I think investors can reasonably expect a high single-digit long-term annualized return from here, but I typically like double-digit prospective returns when investing in smaller med-tech.

 

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Globus Medical Continues To Leverage Innovation To Gain Share And Drive Double-Digit Growth