Assessing Zimmer Biomet Holdings: Insights From 8 Financial Analysts

Throughout the last three months, 8 analysts have evaluated Zimmer Biomet Holdings ZBH, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $123.88, a high estimate of $150.00, and a low estimate of $115.00. This current average has decreased by 6.39% from the previous average price target of $132.33.

Breaking Down Analyst Ratings: A Detailed Examination

The analysis of recent analyst actions sheds light on the perception of Zimmer Biomet Holdings by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Zimmer Biomet Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Zimmer Biomet Holdings compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Zimmer Biomet Holdings's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

To gain a panoramic view of Zimmer Biomet Holdings's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Zimmer Biomet Holdings analyst ratings.

Unveiling the Story Behind Zimmer Biomet Holdings

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.

Financial Insights: Zimmer Biomet Holdings

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Zimmer Biomet Holdings's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 3.18%. This indicates a substantial increase in the company's 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 a standout performer, exceeding industry averages. With an impressive net margin of 9.13%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Zimmer Biomet Holdings's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.37%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Zimmer Biomet Holdings's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.8%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.47, Zimmer Biomet Holdings adopts a prudent financial strategy, indicating a balanced approach to debt management.

What Are Analyst Ratings?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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