Beyond The Numbers: 8 Analysts Discuss Zimmer Biomet Holdings Stock

Across the recent three months, 8 analysts have shared their insights on Zimmer Biomet Holdings ZBH, expressing a variety of opinions spanning from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $126.38, along with a high estimate of $140.00 and a low estimate of $115.00. This current average represents a 10.37% decrease from the previous average price target of $141.00.

Diving into Analyst Ratings: An In-Depth Exploration

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: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Zimmer Biomet Holdings. This offers insight into analysts' perspectives on 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 provide insights into price targets, offering estimates for the future value of Zimmer Biomet Holdings's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Zimmer Biomet Holdings's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Zimmer Biomet Holdings analyst ratings.

About 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.

Zimmer Biomet Holdings's Economic Impact: An Analysis

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Zimmer Biomet Holdings's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 5.02%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: Zimmer Biomet Holdings's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 9.28%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Zimmer Biomet Holdings's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.31%, the company may face hurdles in achieving optimal financial performance.

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

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.45.

The Core of Analyst Ratings: What Every Investor Should Know

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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