ZBH stock: buy or sell?

ZBH stock price: $133.64 -2.53% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

4

Zimmer Biomet shares fell -2.53% to $133.64 today. Friday was the fourth red session in a row, sliding in full a -3.59%.

Zimmer Biomet Holdings, Inc., together with its subsidiaries, designs, manufactures, and markets musculoskeletal healthcare products and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

Should I buy ZBH stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Zimmer Biomet stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Zimmer Biomet stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 15 ratings published for ZBH stock in the last month.

The general sentiment of these ratings is bullish for ZBH stock, with 11 positive ratings.
Is ZBH a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-2Citigroupn/aBuy
2019-8-12ArgusHoldBuy
2019-7-30BarclaysUnderweightEqual Weight
2019-7-29Wells Fargo & Con/aOutperform
2019-7-29Robert W. BairdNeutralOutperform
2019-7-29Raymond Jamesn/aOutperform
2019-7-29Morgan Stanleyn/aOverweight
2019-7-29Jefferies Financial Groupn/aBuy
2019-7-29Credit Suisse Groupn/aUnderperform
2019-6-11Sanford C. BernsteinUnderperformMarket Perform
2019-4-8Evercore ISIIn-LineOutperform
2019-4-15BarclaysUnderweightUnderweight
2019-3-4Morgan StanleyOverweightOverweight
2019-2-5SunTrust Banksn/aBuy
2019-1-22Stifel Nicolausn/aBuy

ZBH stock analysis

Daily outlook

Zimmer Biomet ended today at $133.64 and fell a terrifying -2.53%.

Shares of Zimmer Biomet ended today at $133.64 and fell a terrifying -2.53%. Since price and SMA200d lines crossed up on July, ZBH climbed $15.83 (13.44%). Since May when SMA100d and SMA200d crossed up, ZBH price gained $19.92 per share (17.52%). On August 13th, ZBH hit new all time highs, pushing higher previous ATH of $139.77 recorded on August 12th. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

ZBH stock chart (daily)

Weekly outlook

Zimmer Biomet shares dropped -2.46% this week, ending at $133.64. Late July ZBH boosted an outstanding 8.22% in just one week.

In a weekly time frame, Zimmer Biomet stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, ZBH might consolidate in a flat-base, waiting to break out over or down under . Not so far away is the last price record Zimmer Biomet marked last week. By mid June ZBH price bounced up over the SMA of 40 weeks that acted as support stopping new slides. By mid May, SMA20w and SMA40w crossed up triggering a rise of 9.80%.

ZBH stock chart (weekly)

ZBH stock price history

ZBH stock went public on November 1st, 2017 with a price of $110.511. Since then, ZBH stock surged a 20.90%, with an average of 20.90% per year. If you had invested right after ZBH's IPO a $1,000 in ZBH stock in 2017, it would worth $209.00 today.

1: Adjusted price after possible price splits or reverse-splits.

ZBH stock historical price chart

ZBH stock reached all-time highs on August/13 with a price of $140.53.

ZBH stock price target is $143.40

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We have 13 price predictions for Zimmer Biomet stock posted in the last 30 days:
ZBH stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-2CitigroupRaises Target$146.00$158.008.2%
2019-7-30BarclaysUpgrades$117.00$140.0019.7%
2019-7-29Wells Fargo & CoRaises Target$143.00$150.004.9%
2019-7-29Robert W. BairdUpgrades$132.00$154.0016.7%
2019-7-29Raymond JamesRaises Target$145.00$150.003.4%
2019-7-29Morgan StanleyRaises Target$143.00$150.004.9%
2019-7-29Jefferies Financial GroupRaises Target$150.00$167.0011.3%
2019-7-29Credit Suisse GroupReiterates$101.00$120.0018.8%
2019-4-8Evercore ISIUpgradesn/a$145.00-
2019-4-15BarclaysRaises Target$113.00$117.003.5%
2019-3-4Morgan StanleyRaises Target$132.00$143.008.3%
2019-2-5SunTrust BanksRaises Targetn/a$135.00-
2019-1-22Stifel NicolausLowers Target$150.00$135.00-10%
(in average)$133.80$143.407.0%
Moving in a range from $167.00 and $117.00, the price prediction for ZBH stock is $143.40. In average, analysts' outlook on ZBH price forecast is positive, increasing the forecast by a 7.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After publishing its last earnings report on April, Zimmer Biomet soared a fine 7.61%. Unfortunately, reported EPS is not yet available in our database.
ZBH earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.63n/a
2017-Q32017-11-011.741.72-1.1%
2017-Q42018-01-302.12.10.0%
2018-Q12018-04-261.871.912.1%
2018-Q22018-07-271.881.922.1%
2018-Q32018-10-261.61.631.9%
2018-Q42019-02-012.182.180.0%
2019-Q12019-04-241.87n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Zimmer Biomet annual revenues inched a slightly fine 1.66% to $7,932.90 M USD from $7,803.30 marked in 2017. Nonetheless, its income margin (compared to revenues) plunged to -4.78%, that is $-379.20 million.

Zimmer Biomet fiscal year ends in December, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Zimmer Biomet TTM sales up to March 2019 were $7,890.80 and income $-307.80 M dollars. If we compare this TTM figures with the last reported annuality, we can review Zimmer Biomet business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, remained stable a neutral -0.53%. Similarly, profit margin (net income/sales) stayed stable at -4.78%.

ZBH annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$4,620 M-$761 M16.5%-
2014$4,673 M1.15%$720 M15.4%-5.37%
2015$5,998 M28.34%$147 M2.5%-79.59%
2016$7,684 M28.11%$306 M4.0%108.10%
2017$7,803 M1.55%$1,814 M23.2%492.94%
2018$7,933 M1.66%$-379.20 M-4.8%-120.91%
TTM $7,891 M-0.53%$-307.80 M-3.9%-18.83%

Quarterly financial results

Zimmer Biomet posted $1,975.50 M in sales for 2019-Q1, a -4.61% less compared to previous quarter. Reported quarter earnings marked $246.10 M with a profit margin of 12.46%. Profit margin skyrocketed a 55.97% compared to previous quarter when profit margin was -43.51%. When comparing revenues to same quarter last year, Zimmer Biomet sales marked an ugly correction and slightly fell a -2.09%.
ZBH quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$1,950 M-$184.20 M9.4%-
2017-Q3$1,820 M-6.67%$98.80 M5.4%-46.36%
2017-Q4$2,089 M14.79%$1,231.40 M58.9%1,146.36%
2018-Q1$2,018 M-3.42%$174.70 M8.7%-85.81%
2018-Q2$2,008 M-0.50%$185.00 M9.2%5.90%
2018-Q3$1,837 M-8.51%$162.20 M8.8%-12.32%
2018-Q4$2,071 M12.76%$-901.10 M-43.5%-655.55%
2019-Q1$1,976 M-4.61%$246.10 M12.5%-127.31%

Zimmer Biomet ownership

When you are planning to buy shares of a stock, it's worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Zimmer Biomet, 0.24% of all outstanding shares are owned by its staff.

Bearish positions for ZBH stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related companies:

ZBHCNMDGMEDJNJNUVA
Market cap$27.4 B$2.9 B$3.9 B$349.2 B$3.4 B
Total shares204.8 M28.3 M76.7 M2,660.0 M51.9 M
Float shares204.3 M27.6 M75.5 M2,630.0 M51.6 M
  - Institutional holdings (%)91.8%97.5%92.4%69.2%112.1%
  - Insider holdings (%)0.2%1.8%3.6%0.1%0.7%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

ZBH summary

Friday, August 23rd, 2019
Open$136.79
Close$133.64
Day range$133.06 - $137.28
Previous close$137.11
Session gain-2.53%
Average true range$2.82
50d mov avg$126.86
100d mov avg$123.83
200d mov avg$119.12
Daily patternlt01c
Weekly pattern lt06a

Zimmer Biomet performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For Zimmer Biomet, the comparison is made against CONMED, Globus Medical, , NuVasive, RTI Surgical, Smith & Nephew SNATS, Stryker and Wright Medical.
Stock3m6m12m
ZBHZimmer Biomet16.94%7.83%7.44%
CNMDCONMED24.26%33.89%31.07%
GMEDGlobus Medical26.42%7.59%-1.97%
JNJ-5.46%-2.60%-0.86%
NUVANuVasive6.16%11.93%-6.63%
RTIXRTI Surgical-25.00%-33.26%-30.97%
SNNSmith & Nephew SN...11.03%24.53%33.63%
SYKStryker18.43%16.29%29.87%
WMGIWright Medical-28.81%-29.85%-21.09%

Zimmer Biomet competitors

We selected a few stocks to conform a list of Zimmer Biomet competitors to review if you are interested in investing in ZBH:

Latest ZBH stock news