In-Depth Examination Of 6 Analyst Recommendations For Zimmer Biomet Holdings

During the last three months, 6 analysts shared their evaluations of Zimmer Biomet Holdings ZBH, revealing diverse outlooks from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $139.17, along with a high estimate of $155.00 and a low estimate of $130.00. Observing a 1.96% increase, the current average has risen from the previous average price target of $136.50.

Analyzing Analyst Ratings: A Detailed Breakdown

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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey 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.

Delving into Zimmer Biomet Holdings's Background

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.

Key Indicators: Zimmer Biomet Holdings's Financial Health

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, Zimmer Biomet Holdings showcased positive performance, achieving a revenue growth rate of 3.18% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: Zimmer Biomet Holdings's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.13% net margin, the company effectively manages costs and achieves strong profitability.

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 lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.8%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Zimmer Biomet Holdings's debt-to-equity ratio is below the industry average. With a ratio of 0.47, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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