Stock of the Day

May 30, 2023

Zimmer Biomet (ZBH)

$104.89
+$1.26 (+1.2%)
Market Cap: $20.63B

About Zimmer Biomet

Zimmer Biomet Holdings, Inc., together with its subsidiaries, operates as a medical technology company worldwide. The company designs, manufactures, and markets orthopedic reconstructive products, such as knee and hip products; S.E.T. products, including sports medicine, biologics, foot and ankle, extremities, and trauma products; craniomaxillofacial and thoracic products comprising face and skull reconstruction products, as well as products that fixate and stabilize the bones of the chest to facilitate healing or reconstruction after open heart surgery, trauma, or for deformities of the chest. It also offers robotic, surgical, and bone cement products. The company's products and solutions are used to treat patients suffering from disorders of, or injuries to, bones, joints, or supporting soft tissues. It serves orthopedic surgeons, neurosurgeons, hospitals, stocking distributors, healthcare dealers, and other specialists, as well as agents, healthcare purchasing organizations, or buying groups. The company was formerly known as Zimmer Holdings, Inc. and changed its name to Zimmer Biomet Holdings, Inc. in June 2015. Zimmer Biomet Holdings, Inc. was founded in 1927 and is headquartered in Warsaw, Indiana.

Zimmer Biomet Bull Case

Here are some ways that investors could benefit from investing in Zimmer Biomet Holdings, Inc.:

  • The company recently reported earnings per share (EPS) of $2.31, exceeding analysts' expectations of $2.30, indicating strong financial performance.
  • Zimmer Biomet Holdings, Inc. has a current stock price of $103.31, which is below the consensus price target of $124.15, suggesting potential for price appreciation.
  • With a market capitalization of approximately $20.57 billion, the company is well-positioned in the medical technology sector, providing stability and growth potential.
  • The company has a solid dividend yield of 0.93%, which can provide a steady income stream for investors.
  • Analysts have given Zimmer Biomet Holdings, Inc. a consensus rating of "Hold," with several recent upgrades indicating positive sentiment about its future performance.

Zimmer Biomet Bear Case

Investors should be bearish about investing in Zimmer Biomet Holdings, Inc. for these reasons:

  • Recent price target reductions by analysts, such as from Royal Bank of Canada from $130.00 to $125.00, may indicate concerns about the company's growth prospects.
  • Two analysts have rated the stock with a sell rating, which could signal potential risks associated with investing in the company.
  • The company's debt-to-equity ratio of 0.43, while manageable, suggests that it has a moderate level of debt, which could impact financial flexibility.
  • Zimmer Biomet Holdings, Inc. has a relatively high P/E ratio of 23.22, which may indicate that the stock is overvalued compared to its earnings.
  • Market volatility, as indicated by a beta of 1.02, suggests that the stock may experience fluctuations that could affect investor returns.

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