Breakout for Globus Medical (GMED) in the Charts?
A key level of resistance has formed in the chart of Globus Medical Inc. (GMED). If that level is broken, a breakout could ensue…
Globus Medical Inc. (GMED) is a medical device company that develops and provides healthcare products and solutions to hospitals, physicians, and surgical centers. The vast majority of the company’s revenue is generated from musculoskeletal solutions products.
While the company initially struggled at the beginning of the pandemic, there has been a strong rebound since late April. GMED has seen a spike in revenue from its U.S. spine business. The company should benefit from aging demographics as an older population is more prone to musculoskeletal degeneration and fractures.
GMED has a fairly strong balance sheet and a high gross margin. While growth was lagging over the last year, both sales and earnings are expected to return strong next year. The stock’s valuation is a bit high, with a P/E of 60, but is less than the industry average.
GEMD’s stock has seen some momentum over the short-term, which has led to a “Strong Buy” rating in our POWR Ratings system, with a grade of “A” for Trade Grade and Buy & Hold Grade. This rating is reflected in its chart.
Take a look at the 1-year chart of GMED below with my added notations…
See Chart and continue reading at STOCKNEWS.com
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Christian Tharp, CMT
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