Under-Followed Globus Medical Has 22% Upside
Globus Medical (GMED) is a medical device company that sells spine implants and surgical robots used in spinal surgery. This complementary portfolio has helped Globus power higher over the past six years. The stock is in a well defined rising trend channel, recently put in a double bottom, and applying fibonacci extension levels to the 2018 high and the 2019 low generates price objectives of $70 and $88, representing upside of 22% and 54%, respectively.
The medical device sector has been a solid outperformer relative to the S&P 500 over the past five years, as more than 10,000 baby boomers turn 65 every single day. The secular trends behind healthcare is a trend you do not want to ignore. From a top down and a bottoms up perspective, Globus Medical could continue to be a solid winner.