What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Medical Devices & Supplies - Cardiology, Neurology, Vascular company Merit Medical Systems (NASDAQ: MMSI) jumped 4%. Is now the time to buy Merit Medical Systems? Access our full analysis report here, it’s free for active Edge members.
• Medical Devices & Supplies - Specialty company Globus Medical (NYSE: GMED) jumped 4.2%. Is now the time to buy Globus Medical? Access our full analysis report here, it’s free for active Edge members.
• Hospital Chains company Tenet Healthcare (NYSE: THC) jumped 3.6%. Is now the time to buy Tenet Healthcare? Access our full analysis report here, it’s free for active Edge members.
• Health Insurance Providers company Progyny (NASDAQ: PGNY) jumped 4.2%. Is now the time to buy Progyny? Access our full analysis report here, it’s free for active Edge members.
• Drug Development Inputs & Services company IQVIA (NYSE: IQV) jumped 3.5%. Is now the time to buy IQVIA? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Globus Medical (GMED)

Globus Medical’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 14 days ago when the stock gained 32.7% on the news that the company reported third-quarter results that significantly beat analyst estimates and raised its full-year guidance. For the third quarter, net sales reached $769 million, a 22.9% increase year-on-year that surpassed the $734.8 million consensus estimate. The company's adjusted earnings per share (EPS) was even more impressive, coming in at $1.18, which was substantially higher than the projected $0.77. Buoyed by the strong performance, Globus Medical increased its full-year 2025 guidance for both revenue and adjusted EPS. Overall, the significant top- and bottom-line beats, coupled with a more optimistic outlook for the full year, drove investor enthusiasm.

Globus Medical is up 5% since the beginning of the year, and at $85.95 per share, it is trading close to its 52-week high of $93.32 from January 2025. Investors who bought $1,000 worth of Globus Medical’s shares 5 years ago would now be looking at an investment worth $1,470.

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