Globus Medical Inc (GMED): What Are The Future Prospects?
Analysts covering Globus Medical Inc (NYSE:GMED) are predicting double-digit earnings per share growth of 38.42% over the following three years. Presently, with an EPS of $1.125, we can expect an upcoming EPS of $1.557. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. See our latest analysis for GMED
How is GMED going to perform in the future?
GMED is covered by 12 analysts who by consensus are expecting earnings to increase from today’s level of $1.125 to $1.557 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 38.42% over the next few years, which is an optimistic outlook in the near term. During the same time we will see the revenue grow from $595M to $756M and profit is predicted to escalate from $108M to $149M in the next couple of years, growing by 38.42%. At this level of revenue and profit, margins are predicted to be extremely healthy as well.
Is the growth built on solid basis?
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. GMED’s earnings growth the past couple of years was 53.69% which indicates that the company’s past performance is quite revealing of future outcome. This means GMED has already proven its capacity to grow at a robust rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
Next Steps:
For GMED, I’ve compiled three key factors you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is GMED worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GMED is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of GMED? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
