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Globus Medical GMED shares soared 5.4% in the last trading session to close at $73.37. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.2% gain over the past four weeks.
Globus Medical recorded a strong price increase driven by its encouraging first-quarter 2021 results, with adjusted earnings per share and revenues surpassing Zacks Consensus Estimate by 36.1% and 15%, respectively. The raised full year 2021 guidance also augers well. The company’s robust product suite, which includes the CORBEL Lateral ALIF system and CREO ONE, and a strong robotics arm driving the top line during the first quarter raise optimism.
Price and Consensus
This medical device company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of +500%. Revenues are expected to be $211.71 million, up 42.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Globus Medical, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on GMED going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Globus Medical, Inc. (GMED) : Free Stock Analysis Report
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