GLOBUS MEDICAL INC significantly underperformed today. It delivered -3.54% to close at 45.79. It's recent 5 day performance has been +3.08%, -5.64%, +1.06%, +0.79% and -1.52%.
GMED showed a strong bearish trend over the last 3 months. During this period GMED delivered -13.88% and saw a maximum drawdown of -20.28%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in GMED till volatility reduces and a clear trend emerges.
GMED has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 14 Nov, 2016 to 6 Jun, 2018. Over the last 2 years 11 months and 3 days, GMED outperformed the SP500 index on 54% days.
GMED was profitable on 52% days in the last three months. During this time, it delivered on average -0.21% per day. It delivered it's worst daily return of -9.71%, during this period, on Friday, 9 Nov, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 29 Oct, 2018 and went on till 2 Nov, 2018. This bullish trend returned +4.77% to investors.
The last 12 months saw GMED's investors making profits in 8 months and incurring losses in 4 months. During the last year, GMED and SP500 index had the same number of profitable months. GMED was also a more risky investment than SP500 index as it's worst month in the last year, Jun 2018, returned -9.16% compared to -7.28% returned by SP500 index in Oct 2018. GMED had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both GMED and SP500 index significantly outperform during months when quarterly/annual results are announced.
Financial security and independence are like a three-legged stool resting on savings, insurance and investments.
-- Brian Tracy
GMED is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in GMED's volatility from 10 Sep, 2018 to 12 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that GMED has significant positive skewness in it's return distribution. This indicates that investors can expect GMED to recover from drawdowns quickly. Which makes GMED a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
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