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Zimmer Biomet Holdings, Inc. (ZBH) is a global medical technology company specializing in musculoskeletal healthcare solutions with a market cap of $19.7 billion. Headquartered in Warsaw, Indiana, the company designs, manufactures, and markets a broad portfolio of orthopedic products, including joint reconstruction implants, sports medicine solutions, trauma devices, craniomaxillofacial and thoracic products, and digital and robotic surgical technologies.
The stock has significantly underperformed the broader market over the past year, sliding 18.9%, while the S&P 500 ($SPX) surged 23.5%. The decline has continued into 2025, with ZBH down 5.4% year to date, in contrast to the S&P 500’s 4% gain.
The stock has also lagged behind the medical device sector, trailing the iShares U.S. Medical Devices (IHI), which posted a 15% gain over the past year and is up 10.5% year to date.
Weak demand, ERP system disruptions, and market share losses in hip implants have propelled the stock downward over the past year.
On Feb. 6, Zimmer Biomet reported its Q4 and full-year 2024 results. Despite an adjusted EPS of $2.31, beating expectations and revenue of $2 billion surpassing forecasts, the stock declined 5.1%. The company posted an annual profit of $903.8 million, or $4.43 per share, on revenue of $7.7 billion. Looking ahead, Zimmer Biomet expects full-year earnings between $8.15 and $8.35 per share.
For the fiscal year ending in December, analysts project Zimmer Biomet’s EPS to rise 2.8% year over year to $8.22. However, the company’s track record on earnings surprises has been inconsistent, surpassing consensus estimates in three of the last four quarters but falling short once.
Among the 28 analysts covering the ZBH stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, two “Moderate Buys,” 16 “Holds,” and two “Strong Sells.”
This configuration is more bullish than two months ago, when seven analysts rated the stock a “Strong Buy.”
On Feb. 10, Truist Financial Corporation (TFC) analyst Richard Newitter reduced Zimmer Biomet’s price target from $118 to $113 while maintaining a “Hold” rating.
Despite a modest Q4 revenue beat, the company’s weaker-than-expected FY25 outlook pressured the stock. However, the analyst notes that the organic revenue guidance appears conservative, and upcoming product launches could support stronger revenue growth and an EPS rebound in the second half of the year.
ZBH’s mean price target of $121.24 indicates a potential upside of 23.2% on the current market prices. The Street-high target of $150 represents a premium of 50.2% from the prevailing market prices.
