A New Development in Zimmer Biomet Holdings, Inc. (ZBH)

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is now being followed by Deutsche Bank, as they initiated the stock at Hold on January 03. Analysts at Citigroup, shed their negative views on January 02 by lifting it fromNeutral to Buy. The stock lost favor of JP Morgan analysts who expressed their lack of confidence in it using a downgrade from Overweight to Neutral on December 19. UBS, released new analyst coverage on November 28, calling the stock is Buy.

ZBH stock dropped -0.15% in recent trade and currently has a stock-market value of $25.09B. The shares finished at $122.94, after trading as low as $122.55 earlier in the session. It hit an intraday high Thursday at $123.83. Trading activity significantly improved as the volume at ready counter increased to 1,310,467 shares versus 1,028,715 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,268,078 shares. The stock is now 26.76% above against its bear-market low of $96.99 on December 24, 2018. It has retreated -9.44% since it’s 52-week high of $134.55 reached in September. Now the market price is up 4.26% on the year and up 18.53% YTD.

Wall Street’s most bullish Zimmer Biomet Holdings, Inc. (NYSE:ZBH) analysts are predicting the share price to blow past $158 per share during the next 12 months. The current median share price forecast by them is $135, suggesting that the stock could increase 9.81% in that time frame. The average price target of $131.75 calls for a nearly 7.17% increase in the stock price.

Zimmer Biomet Holdings, Inc. (ZBH)’s 50 day simple moving average (SMA 50) price is $114.89 and its 200-day simple moving average (SMA 200) price is $117.28. The company’s stock currently has a total float of 204M shares. Its weekly volatility is hovering around 1.42% and felt 1.42% volatility in price over a month. On the upside, the share price will test short term resistance at around $123.66. On a downside, the stock is likely to find some support, which begins at $122.38. The failure to get near-term support could push it to $121.83.

Moreover, it trades for 14.79 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.23x price/book and 3.16x price/sales. Compared to others, Zimmer Biomet Holdings, Inc. is in a different league with regards to profitability, having net margins of -4.8%. To put some perspective around this, the industry’s average net margin is 13.3%. ZBH’s ROE is -3.2%, which is also considerably worse than the industry’s ROE of 16.48%. It’s also very liquid in the near term, with a current ratio of 1.8. The stock has a debt/capital of 0.79.

Shares of ZBH have gained 12.4% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Zimmer Biomet Holdings, Inc. (NYSE:ZBH) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 2 quarters (16%), whereas at 3 occasion EPS met analyst expectations. ZBH last reported earnings that exceeded expectations. The company raked in $2.18 per share, 541.18% change on the same period last year. That was better than consensus for $2.17. Revenue for the recent quarter stood at $2.07 billion, down 0% on last year and above the $2.06 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.94 billion to $2 billion, which should be compared with $2.03 billion generated last year. EPS is seen in a range of $1.81 to $1.94, against the $2.04 reported a year ago.