Globus Medical (GMED) reached the buy point of a long, deep cup-with-handle base in above average volume on Monday. The medical products maker is Monday's pick for IBD 50 Growth Stocks To Watch. The stock is climbing and is on pace for four straight weeks of gains.

Globus Medical was added to the IBD Leaderboard Leaders list on Monday. Globus stock may be rising alongside some health care stocks on news that the Trump administration may extend tax subsidies for the Affordable Care Act, also known as Obamacare, for two years.

Globus specializes in musculoskeletal technology used in robotic spinal and cranial surgeries and procedures. It also makes biomechanical solutions and implants used in joint reconstruction and orthopedic trauma procedures. Also, it develops regenerative biologics, including synthetic bone and graft products.

It ranks No. 2 out of 122 stocks in the Medical Products group, which holds the 80th spot out of the 197 industry groups that Investor's Business Daily tracks.

Medical Products Name Breaks Out

The medical products stock rose around 3.5% during Monday's trade, adding to Friday's 4.5% jump. Shares on Monday broke out of a 43-week long stage-one cup-with-handle base, with an 87.16 buy point. Globus is in a 5% buy zone up to 91.52, according to MarketSurge pattern recognition.

The 45% deep base formed after shares plunged in February, following a record high of 94.93 on Jan. 30. Shares then plummeted to a 52-week low of 51.79 in early August. The steep drop below its two prior flat bases reset the new cup-with-handle base count.

Shares surged nearly 36% in heavy volume after the medical products leader topped third-quarter earnings and sales estimates on Nov. 6. Globus stock digested the gain and formed a much-needed handle. The stock has jumped nearly 72% from the bottom of the base.

The back surgery technology name's recent strength helped it earn an 89 out of 99 possible IBD Relative Strength Rating. Moreover, its relative strength line is also on a steep incline.

Its IBD Accumulation/Distribution Rating of A indicates heavy institutional buying over the last 13 weeks. And its 1.3 up/down volume ratio shows positive demand over the last 50 days.

Globus Delivers Beat-And-Raise Quarter

Globus Medical's third-quarter earnings growth ramped up to 42% from 5% and 15% in the prior two quarters. Its revenue also showed much improvement, with a 23% jump in the third quarter, after a decline of 1% and a bump of 18% in the prior two quarters.

The medical products maker also raised its full-year 2025 sales guidance range to between $2.86 billion to $2.90 billion. It previously forecast $2.80 billion to $2.90 billion. It also boosted its 2025 per-share earnings outlook to a range of $3.75 to $3.85 from a previous range of $3.00 to $3.30. Both revised forecasts were above views.

Globus also posted record high free cash flow of $213.9 million in the third quarter, up 24% vs. the prior year.

Wall Street expects fourth-quarter earnings growth to ease to 29% then weaken to a 10% drop over the following four quarters. Analysts call for an 18% rise in fourth-quarter sales, then a slower 3% growth rate over the same time period.

Analysts polled by FactSet expect 25% profit growth in 2025 and a more modest 8% rate in 2026.

The company has been a steady profit grower as seen in its Earnings Stability factor of 9 out of 99 possible – with a lower number being better. Finally, it holds a 98 Composite Rating.

Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.

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