8 Most Promising Medical Stocks According to Hedge Funds

5. Globus Medical, Inc. (NYSE:GMED) 

Number of Hedge Fund Holders: 38 

Globus Medical, Inc. (NYSE:GMED) is a leading medical device company that specializes in musculoskeletal solutions. It develops, manufactures, and distributes innovative implants and instruments for spinal, orthopedic, and neurosurgical procedures. Its product portfolio includes spinal implants, biologics, and enabling technologies such as robotic navigation systems.

In Q2 2024, Globus Medical reported revenue of $629.7 million, a remarkable 115.93% increase from $291.6 million in Q2 2023, largely driven by the acquisition of NuVasive. U.S. sales rose by 103.5%, while international sales surged by 182.3% (191.3% on a constant currency basis).

Despite strong revenue growth, Globus Medical, Inc. (NYSE:GMED)’s profitability metrics were mixed. GAAP net income decreased by 45% to $31.8 million, and GAAP diluted EPS fell to $0.23 from $0.57 in the previous year. However, non-GAAP diluted EPS improved to $0.75 from $0.63, and adjusted EBITDA increased by 98% to $190.4 million. The decline in GAAP metrics is attributed to high merger-related costs and amortization expenses, but the improvement in non-GAAP figures indicates underlying operational efficiency.

Here is what Daniel Scavilla, the company’s president and CEO said about the company’s performance in its Q2 call earning transcript:

“From pioneering the XLIF procedure that is now the gold standard of lateral surgery, leading the market in expandable spacer technology, and developing the best spinal robot with the most advanced interoperative CT imaging, we are working to create surgical proceduralization of all key spine surgeries to create the standard of care across the spine industry. Our intellectual property portfolio has been number one in the spinal industry for the last decade, and Globus is committed to further expanding this lead, especially in the enabling tech arenas, as we continue to be at the forefront of imaging, navigation, and robotics. To accomplish this, we remain committed to continuing existing projects, and we’ll have an ongoing PD presence on the West Coast focused on spine and neuromonitoring solutions.”