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Why Globus Medical Stock Rose 10% on January 9

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Stock performance

On January 9, Globus Medical (GMED) was trading at a stock price of $43.79, which is an ~9.91% rise from its closing price of $39.84 on January 8. On January 4, Globus Medical’s stock price rose ~5.04% to $40.00 from its close of $38.08 on January 3. On January 3, the company hit its 52-week low of $38.01.

On January 9, Globus Medical was trading at $43.79, which is ~26% below its 52-week high of $57.83 on November 8, 2018.

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Reason for the stock price hike

On January 8, Globus Medical announced the preliminary unaudited financial results for the fourth quarter and fiscal 2018 ending on December 31, 2018. Globus Medical estimates that its net sales in the fourth quarter are expected to be ~$195.5 million, which is ~11% YoY (year-over-year) growth. The company expects that its net sales in fiscal 2018 will be ~$712.5 million, which is ~12% YoY growth.

Globus Medical also provided financial guidance for fiscal 2019. The company expects the net sales in fiscal 2019 to be ~$770.0 million. Globus Medical expects the diluted non-GAAP EPS for fiscal 2019 to be $1.72.

Globus Medical will present its final fourth-quarter and fiscal 2018 financial results on February 21.

Wall Street analysts expect NuVasive (NUVA) and Zimmer Biomet Holdings (ZBH) to generate revenues of $293.89 million and $2.0 billion, respectively, which represents an ~8.19% YoY growth and a 0.61% YoY decline.

Analysts’ recommendations

Among the 13 analysts tracking Globus Medical in January, three recommended a “strong buy,” four recommended a “buy,” five recommended a “hold,” and one recommended a “sell.”

On January 9, Globus Medical had a consensus 12-month target price of $57.64, which represents an ~30.44% return on investment over the next 12 months.

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