Stock of the Day

May 30, 2023

Zimmer Biomet (ZBH)

$95.22
+$0.11 (+0.1%)
Market Cap: $18.84B

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 current stock price is around $102.60, which may present a buying opportunity for investors looking for value in the medical equipment sector.
  • Zimmer Biomet Holdings, Inc. recently reported earnings per share (EPS) of $2.31, slightly exceeding analysts' expectations, indicating strong financial performance.
  • The company has a solid market capitalization of approximately $20.30 billion, reflecting its significant presence and stability in the medical technology industry.
  • Institutional investors own about 88.89% of the company's stock, suggesting strong confidence from large financial entities in Zimmer Biomet's future prospects.
  • Zimmer Biomet has announced a quarterly dividend of $0.24 per share, providing a steady income stream for investors, with a dividend yield of 0.94%.

Zimmer Biomet Bear Case

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

  • The stock has experienced fluctuations, with a 12-month low of $93.10, indicating potential volatility that could concern risk-averse investors.
  • Analysts have mixed ratings on the stock, with a consensus rating of "Hold," suggesting uncertainty about its future performance.
  • Recent insider selling, including a senior vice president selling shares, may raise red flags about the company's short-term outlook.
  • The price-to-earnings (P/E) ratio of 23.04 may indicate that the stock is overvalued compared to its earnings, which could deter value-focused investors.
  • Market analysts have set varying price targets, with some lowering their expectations, which could signal a lack of confidence in the stock's growth potential.

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