Why Globus Medical (GMED) is a Top Value Stock for the Long-Term

Myriad Genetics, Inc. MYGN recently made SneakPeek available over the counter in more than 8,800 retail locations nationwide. SneakPeek is the first at-home early fetal sex test for use at six weeks, now available on shelves in Walmart, Walgreens and CVS stores.

Through the SneakPeek test, Myriad Genetics is on a mission to make DNA-based prenatal information affordable and accessible for all families.

MYGN Stock Movement Following the News

Following the news, shares of MYGN fell 2.4% to $15.78 at yesterday’s closing.

According to a 2024 consumer survey, 82% of expectant parents wanted to know the baby's sex before delivery, and a majority of those people preferred buying a test in-store over ordering online. Nowadays, expecting parents want to know fetal sex sooner than ever for preparedness, naming, nursery and registries, bonding and reduced stress. Henceforth, we expect the company’s strategic move to make SneakPeek available in retail stores to have a positive impact on MYGN’s stock in the coming days.

Myriad Genetics currently has a market capitalization of $937.2 million. The company’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 247.73%.

About Myriad Genetics’ SneakPeek

Since 2015, the SneakPeek test has offered expectant families an easy and convenient noninvasive test (available to order online and through doctor’s offices) to learn the sex of their baby. In 2022, Myriad Genetics acquired SneakPeek’s parent company, Gateway Genomics, with a shared goal of expanding consumer access to the innovative at-home fetal sex test through retail partnerships.

SneakPeek is the only at-home test with more than 99% accuracy in detecting a baby’s gender as early as six weeks into pregnancy, clinically proven by peer-reviewed published scientific studies.

More on SneakPeek

The retail test kit includes the patented SneakPeek Snap device, which can be placed on the user’s upper arm with the simple press of a button to collect a blood sample. The sample must then be mailed to the SneakPeek laboratory in the given postage-paid envelope. Test results can be delivered as early as the same day the sample is received through a celebratory text message and email.

More on the News

The retail launch will be followed by a product rebrand, a new packaging design, and a website centered on gender discovery as the first key moment of parental bonding with a baby. These are scheduled for 2025. The brand’s new tagline is "Plan for Joy."

Industry Prospects Favor MGN

Per the Grand View Research report, the global non-invasive prenatal testing market was valued at $4.21 billion in 2023 and is expected to witness a compound annual growth rate (CAGR) of 10.06% from 2024 to 2030. The increasing demand for non-invasive prenatal testing (NIPT), rising collaborations & licensing agreements, and improvements in the reimbursement scenario are some of the key factors to fuel market growth.

Recent Development by MYGN

Last month, Myriad Genetics announced a strategic partnership with jscreen — a national organization focused on genetic education and preventative testing for high-risk populations. This collaboration merges Myriad’s advanced hereditary cancer and reproductive genetic products, MyRisk with RiskScore and Foresight Carrier Screen, with jscreen’s well-established education and care navigation platform.

MYGN’s Price Performance

In the past year, MYGN’s shares have lost 9.4% against the industry’s 7.5% growth.

MYGN’s Zacks Rank and Other Key Picks

MYGN currently carries a Zacks Rank #1 (Strong Buy).

A few other top-ranked stocks in the broader medical space are Boston Scientific BSX, Globus Medical GMED and ResMed RMD, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Boston Scientific’s shares have surged 69.3% in the past year. Estimates for the company’s earnings per share (EPS) have jumped 2.5% to $2.46 for 2024 and 2.2% to $2.77 for 2025 in the past 30 days. BSX’s earnings outpaced estimates in each of the trailing four quarters, delivering an average beat of 8.3%. In the last reported quarter, it posted an earnings surprise of 8.6%.

Estimates for Globus Medical’s 2024 EPS have remained constant at $2.84 in the past 30 days. Shares of the company have surged 60.6% in the past year compared with the industry’s growth of 32.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 12.1%. In the last reported quarter, it delivered an earnings surprise of 10.3%.

Estimates for ResMed’s fiscal 2025 EPS have risen 2.7% in the past 30 days. Shares of the company have surged 86.3% in the past year compared with the industry’s 32.1% growth. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 6.4%. In the last reported quarter, it delivered an earnings surprise of 8.4%.

Zacks Investment Research

HealthEquity, Inc. HQY has been gaining from its business model and strategy. The optimism, led by a solid second-quarter fiscal 2025 performance and strength in Health Savings Accounts (“HSA"), is expected to contribute further. However, stiff competition and the possibility of the integration of acquisitions being unsuccessful are major downsides.

So far this year, the Zacks Rank #3 (Hold) stock has gained 43% against 5.6% decline of the industry.The S&P 500 has increased 26% during the said time frame.

The renowned provider of technology-enabled services platforms for healthcare savings and spending decisions has a market capitalization of $8.75 billion. The company projects 28.2% growth for the next five years and expects to witness continued improvements in its business. HealthEquity’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.76%.

Integra LifeSciences Holding Corporation IART has announced the publication of a new economic study assessing the budget impact of switching treatment from fibrin glue to DuraSeal Polyethylene Glycol (“PEG”) hydrogel in five major European countries. The findings show an average cost savings of €419 to €1,279 per patient, with a consistent cost reduction averaging around 22% per procedure across Belgium, France, Germany and the United Kingdom, and 15% in Italy.

The study, “PEG hydrogel sealant versus fibrin glue in posterior fossa surgery: An economic comparison across five European countries,” was published in the Journal of Comparative Effectiveness Research in February 2024.

Predicting IART Stock Movement Following the News

After the announcement on Nov. 13, IART shares plunged 6.1%, finishing at $23.31 yesterday. On a promising note, the latest development is expected to boost the international business of the company’s Codman Specialty Surgical (“CSS”) segment, which has been benefiting from the rapid acceptance of global neurosurgery line-ups, including CSS management and neuromonitoring. We expect the market sentiment surrounding the IART stock to remain positive surrounding this news.

Integra currently has a market capitalization of $1.91 billion. According to the Zacks Consensus Estimate, the company’s 2024 sales are expected to improve by 4.6% compared to last year. It delivered an earnings beat of 1.41%, on average, in the trailing four quarters.

More on the Study Supporting Integra

Cerebrospinal fluid (CSF) leaks after posterior cranial fossa (PCF) surgery are a significant cause of longer hospital stays, hospital readmissions and other costly post-surgical interventions. The current practice of sealing the operative site after primary closure to aid the healing process and protect the patient from CSF leaks widely relies on fibrin glue or PEG hydrogel.

The published economic analysis, based on a peer-reviewed prospective observational study of 200 patients, found that PEG hydrogel was associated with positive clinical outcomes compared to fibrin glue in PCF surgeries. A decision tree was developed on a previous U.S. model and input costs that were derived from European country-specific published sources. The results indicated that Integra’s DuraSeal Dural Sealant is more clinically effective than fibrin glue at preventing CSF leaks after PCF surgery, which may help hospitals reduce costs. The system is meant for use as an adjunct to standard methods of dural repair as sutures to provide watertight closure.

The study outcome reinforces the company’s focus on the neuro access & repair strategy, innovating new treatment pathways and restoring patient lives through groundbreaking surgical care technologies.

Industry Prospects Favor Integra

Per a Research report, the global CSF management market was valued at $0.67 billion in 2021 and is expected to witness a CAGR of 4.4% by 2031. Increased neurological disease incidences fuel growth and innovations in the medical device sector, offering opportunities in the CSF industry.

More Updates From Integra

Earlier this month, Integra released its third-quarter 2024 financial report, wherein both the top and bottom lines surpassed the consensus mark. The company is progressing with the implementation of its compliance master plan across its manufacturing and supply-chain operations to consistently meet the robust market demand.

IART Stock Price Performance

In the past three months, shares of Integra have risen 6.6% against the industry’s 1.8% fall.

IART’s Zacks Rank and Key Picks

Integra currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Boston Scientific BSX, Haemonetics HAE and Globus Medical GMED, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific’s shares have risen 64.3% in the past year. Estimates for the company’s 2024 earnings per share have jumped 2.5% to $2.46 in the past 30 days. BSX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.29%. In the last reported quarter, it posted an earnings surprise of 8.62%.

Estimates for Haemonetics’ fiscal 2025 earnings per share have jumped 0.4% to $4.59 in the past 30 days. Shares of the company have rallied 4.5% in the past year compared with the industry’s growth of 26.5%. HAE’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.82%. In the last reported quarter, it delivered an earnings surprise of 2.75%.

Estimates for Globus Medical’s 2024 earnings per share have increased 0.4% to $2.95 in the past 30 days. Shares of the company have surged 81.1% in the past year compared to the industry’s 23.4% growth. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.65%. In the last reported quarter, it delivered an earnings surprise of 27.69%.

Zacks Investment Research

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Globus Medical (GMED) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this medical device company a great growth pick right now.

Earnings Growth

Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Globus Medical is 14.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 27.3% this year, crushing the industry average, which calls for EPS growth of 17.1%.

Cash Flow Growth

While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Globus Medical is 72.4%, which is higher than many of its peers. In fact, the rate compares to the industry average of -4.9%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 18.2% over the past 3-5 years versus the industry average of 5.4%.

Promising Earnings Estimate Revisions

Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Globus Medical. The Zacks Consensus Estimate for the current year has surged 4.6% over the past month.

Bottom Line

While the overall earnings estimate revisions have made Globus Medical a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Globus Medical well for outperformance, so growth investors may want to bet on it.

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QIAGEN N.V. QGEN recently collaborated with the McGill University Centre for Microbiome Research to support microbiome research activities and outcomes. The three-year partnership will further advance microbiome sciences and focus on key areas such as DNA extraction from low microbial biomass samples and anaerobic culturing protocols.

The latest partnership aims to strengthen QIAGEN’s microbiome research efforts while supporting innovation at the McGill Centre.

QGEN Stock’s Trend Following the News

Subsequent to the news, the share price of QGEN remained unchanged at $43.23 in after-market trading yesterday. The company is gaining synergies from its collaboration in the microbiome research space. Earlier this year, QGEN partnered with Penn State University in the United States to create a shared research and education facility for the fast-developing microbiome sciences. Henceforth, we expect the latest partnership with McGill Centre to motivate market sentiment in favor of QGEN in the coming days.

QIAGEN currently has a market capitalization of $9.83 billion. The company delivered an average earnings surprise of 2.6% in the trailing four quarters.

Details of the Collaboration

The company will support the McGill Centre with reagents for research across a variety of microbiology and genomic processing workflows and contribute to joint research projects, which will demonstrate the suitability of QIAGEN products for microbiome science. The collaboration will also enable the McGill Centre to train the next generation of scientists better and make microbiome research accessible to a wider range of scientific domains.

QIAGEN products will be used in the McGill Centre's experimental platforms. The centre will also function as a beta-testing site for developing new QIAGEN products for microbiome applications, and refining and optimizing these for broader applications in the scientific community.

The center aims to integrate and synergize microbiome research activities by offering services through two distinct yet complementary experimental platforms — Gnotobiotic Animal Research and Microbial Services.

Significance of QIAGEN’s Collaboration

Microbiome research aims to explore the relationships between microorganisms such as bacteria, fungi and viruses, and their hosts. It can help better understand the microbiome’s impact on health, disease, and microbial ecological processes to develop novel diagnostic and therapeutic strategies.

The latest collaboration is expected to strengthen QIAGEN’s presence in microbiome research space across North America, which represents a $1.8 billion market. It will also help gain a deeper understanding of the needs of the scientific community for studying the function of vast microbial ecosystems. The collaboration aims to enhance QIAGEN’s ability to develop new microbiome solutions based on customer feedback and support the scientific community in uncovering new insights into the microbiome’s impact on health and disease.

Industry Prospects Favor QIAGEN

According to a Research Nester report, the human microbiome market is projected to grow by more than $117.3 billion by 2037, experiencing a compound annual growth rate of 32.2% during 2024-2037. Key factors influencing the market growth include rising cases of lifestyle-related diseases like diabetes and increasing investment in biological drug development across the globe.

QIAGEN’s Recent Development

QIAGEN recently achieved FDA clearance for its QIAstat-Dx Respiratory Panel Mini test for clinical use. This is the second QIAstat-Dx respiratory panel to receive a U.S. regulatory nod this year.

QGEN Stock Price Performance

Year to date, QGEN’s shares have risen 6% compared with the industry’s 10.7% growth.

QGEN’s Zacks Rank and Key Picks

The company currently carries a Zacks Rank #3 (Buy).

Some better-ranked stocks in the broader medical space are Boston Scientific BSX, Globus Medical GMED and ResMed RMD, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific’s shares have surged 58.3% in the past year. Estimates for the company’s earnings per share (EPS) have jumped 2.5% to $2.46 for 2024 and 0.4% to $2.72 for 2025 in the past 30 days. BSX’s earnings surpassed estimates in each of the trailing four quarters, delivering an average beat of 8.3%. In the last reported quarter, it posted an earnings surprise of 8.6%.

Estimates for Globus Medical’s 2024 EPS have remained constant at $2.84 in the past 30 days. Shares of the company have surged 61% in the past year compared with the industry’s growth of 24.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 12.1%. In the last reported quarter, it delivered an earnings surprise of 10.3%.

Estimates for ResMed’s fiscal 2025 EPS have risen 2.2% to $9.22 in the past 30 days. Shares of the company have surged 58.8% in the past year compared with the industry’s 29.2% growth. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 6.4%. In the last reported quarter, it delivered an earnings surprise of 8.4%.

Zacks Investment Research

Globus Medical GMED continues to gain from surging demand for its Musculoskeletal Solutions products. Meanwhile, the company is expanding in the overseas markets through the expansion of direct and distributors sales force. The stock carries a Zacks Rank #2 (Buy) currently.

Factors Driving GMED's Shares

Globus Medical merged its business with NuVasive. The combined company has formed a global musculoskeletal company focused on rapid innovation, addressing unmet clinical needs and improving offerings to surgeons and patients. The combination capitalizes on GMED’s complementary commercial organization and should allow the company to accelerate its globalization strategies to increase customer reach and strengthen surgeon relationships.

The combined company is working on bringing best-in-class technologies to create a differentiated and comprehensive procedural solution offering as part of its approach to address unmet clinical needs and support surgeons and patients. Earlier management noted that the combined company expects to generate a total of $170 million over three years due to the merger with NuVasive, with 40% being realized in year one, 70% by the end of year two and 100% in year three.

In the third quarter, the combined trauma and NuVasive specialty orthopedic (NSO) business delivered 99% growth. This was driven by continued strong performance, market penetration of the base trauma business and the fast uptake of NSO.

Globus Medical is gaining market share in the musculoskeletal solutions space, banking on the strong performance of its implantable devices, biologics, accessories and unique surgical instruments used in an expansive range of spinal, orthopedic and neurosurgical procedures. The company is particularly seeing notable gains across its product portfolio in expandables, biologics, MIS screws, 3D printed implants and cervical offerings.

Globus Medical, Inc. Price

Globus Medical, Inc. price | Globus Medical, Inc. Quote

In the third quarter, Globus Medical’s proforma musculoskeletal revenues (assuming NuVasive revenues in the year-ago period) improved 5.4%, making it the fourth consecutive quarter of pro forma musculoskeletal revenue growth. The growth was driven primarily by strong contributions from the company’s U.S. and international spine businesses. Third-quarter Enabling Technologies revenues grew 39% year over year, driven by increased sales within the U.S. market across the EGPS and E3D products.

During the third quarter of 2024, the company launched four new products. Among the launches, the Excelsius navigation hub pairs navigational accuracy with patient safety features. It is currently the only freehand navigation system on the market to offer the versatility of three distinct imaging workflows. Then, there is the Actify 3D Total Knee system that pairs cementless reconstruction with operative efficiency and anatomic fit. Actify 3D complements the Excelsius Flexrobot with the TKA total knee Arthroplasty application that received FDA clearance in late second-quarter 2024. Within trauma, the company launched the CAPTIVATE SOLA headless compression screw system that provides a fast and efficient solution for fracture repair, bone reconstruction, joint fusion, osteotomy and arthrodesis.

Over the past three months, shares of GMED have gained 24.3% compared with the industry’s 0.2% growth. The company is benefiting from NuVasive business integration. With its consistent focus on strategic market expansion and new product launches, we expect the stock to retain its bullish momentum in the coming days.

Concerning Factors for GMED

Like other industry players, Globus Medical is currently grappling with negative trends in the global economy, including interest rate fluctuations, increases in inflation and financial market volatility. These factors are affecting the company’s operations and financial performance. The increasing geopolitical complexities across the globe, in particular, have resulted in a significant rise in raw material and freight costs for the company. In the third quarter, the company incurred a 99.8% surge in the cost of goods sold. The macroeconomic factors, along with the rising wage and raw material costs, are also leading to a significant escalation in the company’s operating expenses. SG&A expenses in the reported quarter were up 54.1% from the year-ago quarter.

Further, the presence of a large number of players made the musculoskeletal devices market intensely competitive. The orthopedic industry, in particular, is highly competitive with the presence of more prominent players like Zimmer Biomet, Stryker, Johnson & Johnson’s DePuy, Smith & Nephew and Medtronic. Globus Medical needs to constantly introduce or acquire new products to withstand the competitive pressure and maintain its market share.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Boston Scientific BSX, Haemonetics HAE and ResMed RMD, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific’s shares have surged 58.3% in the past year. Estimates for the company’s earnings per share (EPS) have jumped 2.5% to $2.46 for 2024 and 0.4% to $2.72 for 2025 in the past 30 days. BSX’s earnings surpassed estimates in each of the trailing four quarters, delivering an average beat of 8.3%. In the last reported quarter, it posted an earnings surprise of 8.6%.

Estimates for Haemonetics’ fiscal 2025 earnings per share have jumped 0.4% to $4.59 in the past 30 days. Shares of the company have increased 4.5% in the past year compared with the industry’s growth of 26.5%. HAE’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.82%. In the last reported quarter, it delivered an earnings surprise of 2.75%.

Estimates for ResMed’s fiscal 2025 EPS have risen 2.2% to $9.22 in the past 30 days. Shares of the company have surged 58.8% in the past year compared with the industry’s 29.2% growth. RMD’s earnings surpassed estimates in each of the trailing four quarters, with the average beat being 6.4%. In the last reported quarter, it delivered an earnings surprise of 8.4%.

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