Is This the Right Time to Add Globus Medical Stock to 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 14.7% against the industry's 7.1% decline. The S&P 500 composite has risen 19.3% in the same time frame. 

The renowned medical device company has a market capitalization of $12.55 billion. Globus Medical has an earnings yield of 4.7% compared with the industry’s 0.8%. GMED’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, delivering an average surprise of 18.8%. 

Let’s delve deeper.

Upsides for GMED Stock

Musculoskeletal Prospects Strong: Globus Medical 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. 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. 

In line with this, the U.S. Spine business grew 10% year over year in the fourth quarter. The company’s trauma business delivered 27% sales growth in the quarter, driven by continued uptake of its legacy trauma line as well as the precise limb lengthening products. The company also launched the ANTHEM Elbow Fracture System, a comprehensive plating portfolio designed to treat a wide range of elbow fractures. 

Steady Pace of Product Development: Since integrating NuVasive, the cadence of product launches has significantly accelerated. In October 2025, the company launched ANTHEM Elbow Fracture System, a fully comprehensive plating portfolio designed to address a wide spectrum of elbow fractures. In July 2025, the company launched DuraPro with Navigation, a next-generation, oscillating system designed to safeguard delicate tissue. In addition to DuraPro, it launched Verzera, a navigated high-speed drill system integrated with the ExcelsiusGPS and ExcelsiusHub system.

Strong Solvency: Globus Medical exited the fourth quarter of 2025 with cash and cash equivalents of $526.2 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. 

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Downsides for GMED Stock

Macroeconomic Concerns Curb Profit: 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 affecting 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 costs and expenses in check. In the fourth quarter of 2025, SG&A expenses rose 25.8% year over year. 

Estimate Trend

The Zacks Consensus Estimate for GMED’s 2026 earnings per share (EPS) has increased 10% to $4.28 in the past 30 days.

The consensus estimate for the company’s 2026 revenues is pegged at $3.17 billion, indicating a 8% rise from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are Phibro Animal Health PAHC, Envista NVST and Align Technology ALGN.

Phibro Animal Health has an earnings yield of 5.5%, well ahead of the industry’s 2.5% yield. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 20.2%. The company’s shares have surged 117.5% against the industry’s 15.1% decline in the past year.

PAHC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Envista, sporting a Zacks Rank #1, has an earnings yield of 4.8% compared with the industry’s 2.5%. Shares of the company have rallied 54% against the industry’s 15.1% decline. NVST’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.4%.

Align Technology, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term earnings growth rate of 10.1% compared with the industry’s 9.1% rise. Shares of the company have rallied 7.5% compared with the industry’s 22% growth. ALGN’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 6.2%.

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

Zacks Investment Research