Warsaw, Indiana-based Zimmer Biomet Holdings, Inc. (ZBH) designs, manufactures, and markets effective, innovative solutions that support orthopedic surgeons and clinicians in restoring mobility, alleviating pain, and improving the quality of life for patients worldwide. With a market cap of $21.9 billion, Zimmer Biomet operates in more than 25 countries across the globe and sells products in more than 100 countries.

Companies worth $10 billion or more are generally described as "large-cap stocks," Zimmer Biomet fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the medical devices industry.

Zimmer Biomet touched its 52-week high of $133.90 on March 2024 and is trading 19.8% below that peak. ZBH saw marginal gains over the past three months, lagging behind the Health Care Select Sector SPDR Fund’s (XLV) 7.8% gains during the same time frame.

Over the longer term, ZBH has substantially underperformed XLV. ZBH declined 11.4% over the past 52 weeks and 11.7% in 2024 compared to XLV’s 19% gains over the past year and 15.3% returns on a YTD basis.

To confirm the bearish trend, ZBH has traded below its 50-day moving average since mid-April and below its 200-day moving average since late May with slight fluctuations.

Shares of Zimmer Biomet plunged 3.4% after the release of its Q2 earnings on Aug. 7. The company reported a solid 3.9% annual net sales growth to $1.9 billion, exceeding Wall Street’s expectations. It also experienced a 1.3% net margin expansion to 12.5% compared to the year-ago quarter, and its net earnings surged by 15.8%, totaling $242.9 million.

However, the company reduced its full-year revenue growth guidance to the 4% to 5% range due to the expected foreign currency exchange impact, potentially leading to a fall in share prices. Nevertheless, the stock rebounded 2.7% in the next trading session.

Zimmer Biomet’s competitor, Medtronic plc (MDT), has substantially outperformed ZBH over the past year. MDT gained 10.2% over the past 52 weeks and 9.4% on a YTD basis.

Among the 28 analysts covering the ZBH stock, the consensus rating is a “Moderate Buy.” The mean price target of $124.67 represents a potential upside of 16% from current price levels.

More Stock Market News from Barchart

• Is Edison International Stock Outperforming the Nasdaq?
• Is Aflac Stock Outperforming the Nasdaq?
• 1 Dividend Stock to Snag as a Copper Shortage Looms
• Here's Why Sony Stock is a Buy Right Now

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.