Should You Still Hold GMED Stock in Your Portfolio?

Globus Medical, Inc. GMED 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’s rapid cadence of new product introductions demonstrates consistent innovation efforts. A solid financial health also adds to the stock’s appeal. Meanwhile, macroeconomic headwinds and competitive disadvantages remain concerns for GMED’s operations. 

In the past year, this Zacks Rank #3 (Hold) stock has increased 1.2% against the industry's 3.5% decline. The S&P 500 composite has risen 17.3% in the same time frame. 

The renowned medical device company has a market capitalization of $12.51 billion. Globus Medical has an earnings yield of 4.2% compared with the industry’s 0.6%. GMED’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, delivering an average surprise of 16.2%. 

Let’s delve deeper.

Upsides for GMED Stock

Musculoskeletal Prospects Strong: Within this segment, the ongoing momentum in the company’s U.S. Spine business remains encouraging, driven by notable gains across the product portfolio in expandables, MIS screws, lateral and ACDF platforms.Core spine business growth is supported by high retention in the sales field team, strength in the combined product offering, increased product cross-selling and implant pull-through from robotic procedures.

Globus Medical’s core trauma product portfolio continues to grow rapidly, driven by new investments and a strong focus on expanding its reach.  In the third quarter, the core trauma business revenues increased 17.2% year over year.

Additionally, it plans to expand its international presence by introducing more Musculoskeletal Solutions products and growing its sales force in both existing and new markets. Meanwhile, the recent acquisition of Nevro expands Globus Medical's presence in the musculoskeletal market, unlocking a $2.5 billion market opportunity. The strategic move complements the company’s current spinal portfolio offering. 

Steady Pace of Product Development: The company’s team-oriented approach, active surgeon input and demonstrated capabilities position it to maintain a rapid rate of product launches. Since integrating NuVasive, the pace of product launches has significantly accelerated.

In October, the company introduced the ANTHEM Elbow Fracture System, a fully comprehensive plating portfolio designed to address a wide spectrum of elbow fractures. In July, it launched DuraPro with Navigation — a next-generation, oscillating system designed to safeguard delicate tissue. It also introduced Verzera, a navigated high-speed drill system integrated with the ExcelsiusGPS and ExcelsiusHub system.

Globus Medical expanded the Advanced Materials Science (“AMS”) implant portfolio with the COHERE ALIF Spacer. Additionally, the launch of Modulus ALIF Blades marks an extension of its market-leading Modulus ALIF interbody spacer system. The company’s R&D pipeline remains rich, with more meaningful launches expected in the coming months.

Strong Liquidity, Solvency and Capital Structure: Globus Medical exited the third quarter of 2025 with cash and cash equivalents of $371.8 million and no short-term debt on its balance sheet. The company did not report any long-term debt, boasting solid financial stability amid an overall tough macroeconomic landscape. The company generated sufficient liquidity to fund the Nevro acquisition while continuing to invest in its existing business without interruption.

Downsides for GMED Stock

Macroeconomic Concerns Curb Profit: Like other industry players, Globus Medical is currently grappled by negative trends in the global economy, including interest rate fluctuations, increases in inflation and financial market volatility. These factors are adversely impacting the company’s operations and financial performance.

The increasing geopolitical complexities across the globe and potential countermeasures could affect the company’s supply-chain operations globally. With sustained inflationary pressures in the future, the company may struggle to keep its cost of revenues and operating expenses in check.

Lower Demand for Healthcare Products: Globus Medical is persistently challenged by soft demand for healthcare products. Additionally, weak reimbursements for medical products and services may impose a downward pressure on the prices of the company’s products, longer sales cycles and the slower adoption of new technologies, which will ultimately impact the top line.

Furthermore, consolidation in the healthcare industry could lead to demands for price concessions or the exclusion of some suppliers from specific company markets, which could have a negative impact.

Estimate Trend

The Zacks Consensus Estimate for GMED’s 2025 earnings per share (EPS) has increased 3.5% to $3.80 in the past 60 days.

The Zacks Consensus Estimate for the company’s 2025 revenues is pegged at $2.88 billion, suggesting a 14.5% rise from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are Phibro Animal Health PAHC, Boston Scientific BSX and Envista NVST.

Phibro Animal Healthhas an earnings yield of 6.9% compared with the industry’s 2.8% yield. Shares of the company have surged 90.9% in the past year against the industry’s 10.3% decline. PAHC’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.8%.

PAHC carries 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, carrying a Zacks Rank #2,has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.9% growth. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 7.4%. BSX shares have declined 12.7% compared with the industry’s 10.3% decline in the past year.

Envista, currently carrying a Zacks Rank #2, has an earnings yield of 5.4% compared with the industry’s 2.8% yield. Shares of the company have jumped 22.8% against the industry’s 10.3% decline. NVST’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 12.8%.  

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This article originally published on Zacks Investment Research (zacks.com).

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