What 7 Analyst Ratings Have To Say About Zimmer Biomet Holdings

7 analysts have shared their evaluations of Zimmer Biomet Holdings ZBH during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Zimmer Biomet Holdings and provided 12-month price targets. The average target is $134.29, accompanied by a high estimate of $140.00 and a low estimate of $125.00. This upward trend is evident, with the current average reflecting a 1.1% increase from the previous average price target of $132.83.

Deciphering Analyst Ratings: An In-Depth Analysis

A comprehensive examination of how financial experts perceive Zimmer Biomet Holdings is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Zimmer Biomet Holdings. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Zimmer Biomet Holdings compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Zimmer Biomet Holdings's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Zimmer Biomet Holdings's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Zimmer Biomet Holdings analyst ratings.

Get to Know Zimmer Biomet Holdings Better

Zimmer Biomet designs, manufactures, and markets orthopedic reconstructive implants, as well as supplies and surgical equipment for orthopedic surgery. With the acquisitions of Centerpulse in 2003 and Biomet in 2015, Zimmer holds the leading share of the reconstructive market in the United States, Europe, and Japan. Roughly two thirds of total revenue is derived from sales of large joints, another quarter comes from extremities, trauma, sports medicine, and related surgical products. The firm spun out its dental and spine businesses in 2022.

Breaking Down Zimmer Biomet Holdings's Financial Performance

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Positive Revenue Trend: Examining Zimmer Biomet Holdings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.02% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 9.28%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Zimmer Biomet Holdings's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.31%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Zimmer Biomet Holdings's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.77%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Zimmer Biomet Holdings's debt-to-equity ratio is below the industry average. With a ratio of 0.45, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.