Last Updated: 16 Sep 2024
Executive Summary
Zimmer Biomet Holdings Inc. (ZBH) is a leading medical device company with a strong financial performance and positive analyst sentiment. The company's latest stock price of $106.26 is within the range of its 52-week high and low. Fundamental analysis indicates strong revenue and earnings growth, while technical analysis suggests a potential for further upside in the near term. Analysts are generally positive on ZBH, with a majority rating it as a "Hold."
Company Overview
Zimmer Biomet is a global medical device company headquartered in Warsaw, Indiana. The company designs, manufactures, and markets a wide range of products for musculoskeletal, dental, and spine care. ZBH has a strong presence in the orthopedic and prosthetic appliances and supplies industry.
Fundamental Analysis
Revenue: ZBH's trailing twelve months (TTM) revenue stands at $7.52 billion, representing a 3.9% year-over-year (YOY) growth. The company's quarterly revenue growth YOY was 0.18%.
Earnings: Diluted EPS TTM is $4.79, with a quarterly earnings growth YOY of 0.039%.
Profitability: ZBH has a gross profit margin of 0.133 and an operating margin TTM of 0.207. The company's return on assets TTM is 0.0454, and its return on equity TTM is 0.0795.
Valuation: ZBH's trailing PE ratio is 22.18, while its forward PE ratio is 12.29. The company's price-to-sales ratio TTM is 2.876, and its price-to-book ratio is 1.698.
Technical Analysis
Trend: ZBH's stock price has been trending sideways in recent months, with a slight upward bias.
Support and Resistance: The stock has support at its 50-day moving average of $109.75 and resistance at its 200-day moving average of $117.86.
Indicators: The relative strength index (RSI) is currently at 55, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, ZBH's stock price is expected to continue its sideways movement, with potential for a breakout above resistance at $117.86. The company's strong fundamentals and positive analyst sentiment provide a positive backdrop for the stock.
Long Term Outlook
Over the long term, ZBH is expected to continue to benefit from the growing demand for medical devices. The company's strong product portfolio and global presence position it well for future growth.
Analyst Recommendations
Analysts are generally positive on ZBH, with 5 strong buy ratings, 5 buy ratings, 18 hold ratings, 2 sell ratings, and 0 strong sell ratings. The average analyst target price is $124.8.
