Has Globus Medical Stock Quietly Become a Growth Opportunity?
Here is why we think Globus Medical (GMED) stock deserves consideration as a value stock. It is currently trading nearly 34% below its 1 year high, and also trading at a PS multiple which is below the average for the last 3 years. However, it has reasonable revenue growth and strong margins to go with its modest valuation.
Globus Medical’s performance reflects its strategic execution, with worldwide net sales rising 22.9% to $769 million in Q3 2025. The ongoing, successful integration of NuVasive solidifies its 23% share in the $11 billion spine market, driving U.S. spine growth of 9.6%. Additionally, the April 2025 acquisition of Nevro for $250 million expands GMED into the $2.5 billion neuromodulation market, contributing $99.3 million to Q3 sales and becoming accretive to 2025 earnings.
Let’s talk numbers
- Reasonable Revenue Growth: 17.4% LTM and 44.7% last 3 year average.
- Strong Margin: Nearly 14.4% 3-year average operating margin.
- No Major Margin Shock: Globus Medical has avoided any large margin collapse in the last 12 months.
- Modest Valuation: Despite encouraging fundamentals, GMED stock trades at a PE multiple of 23.4
As a quick background, Globus Medical provides healthcare solutions for musculoskeletal disorders and orthopedic trauma treatment, including fracture plates, compression screws, intramedullary nails, and external fixation systems worldwide.
No matter where GMED stock goes, your portfolio should stay on track. See how High Quality Portfolio can help you do that.
| GMED | S&P Median | |
|---|---|---|
| Sector | Health Care | – |
| Industry | Health Care Equipment | – |
| PE Ratio | 23.4 | 23.5 |
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| LTM* Revenue Growth | 17.4% | 6.0% |
| 3Y Average Annual Revenue Growth | 44.7% | 5.5% |
| LTM Operating Margin Change | 5.7% | 0.2% |
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| LTM* Operating Margin | 13.2% | 18.8% |
| 3Y Average Operating Margin | 14.4% | 18.2% |
| LTM* Free Cash Flow Margin | 19.9% | 13.6% |
*LTM: Last Twelve Months
But do these numbers tell the full story? Read Buy or Sell GMED Stock to see if Globus Medical still has an edge that holds up under the hood.
Stocks Like These Can Outperform. Here Is Data
Below are statistics for stocks with same selection strategy applied between 12/31/2016 and 6/30/2025.
- Average 6-month and 12-month forward returns of 12.7% and 25.8% respectively
- Win rate (percentage of picks returning positive) of > 70% for both 6-month and 12-month periods
- Not over dependent on market crashes. During non-crash periods as well, this strategy has 12-month average return of nearly 20% with 67% win rate.
But Consider The Risk
GMED isn’t immune to big drops either. It fell about 34% during the 2018 correction, took a 41% hit in the Covid pandemic, and dropped nearly 48% in the inflation shock. Even with good fundamentals, these dips show the stock can get hit hard when the market turns. Strong businesses still face tough sell-offs in turbulent times.
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read GMED Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.