Zimmer Biomet (ZBH) is identified as an attractive value stock with a Zacks Rank #2 (Buy) rating and an 'A' Value grade. The company trades at a P/E ratio of 11.98, below its industry average of 15.93, and demonstrates solid valuation metrics across P/B and P/CF ratios, suggesting it may be undervalued relative to its earnings outlook.
ZBH
Zimmer Biomet Holdings, Inc.About ZBH
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 fourth comes from extremities, trauma, sports medicine, and related surgical products. The firm spun out its dental and spine businesses in 2022.
News
4 latestZimmer Biomet (ZBH), a musculoskeletal healthcare company, has been identified as a #2 (Buy) on the Zacks Rank with a VGM Score of B and Value Style Score of A. The company features attractive valuation metrics with a forward P/E ratio of 10.51, and analysts have revised earnings estimates higher, with the consensus estimate at $8.54 per share and an average earnings surprise of +4.5%.
Zacks highlights two Medical-Products stocks with strong value characteristics: Baxter International (BAX) and Zimmer Biomet (ZBH), both holding Zacks Rank #2 (Buy) ratings and Value grade A. Both stocks trade at attractive valuations compared to industry averages across multiple metrics including P/E, PEG, P/B, and P/S ratios, suggesting they are currently undervalued with strong earnings outlooks.
Mentions ZBH
Zimmer Biomet is set to report Q3 2026 results on Nov. 4 with revenues expected to grow 2.2% to $2.05 billion, while EPS is projected to decline 0.5% year-over-year. The company faces headwinds from legacy implant phaseouts and international market pressures, particularly in China, though new product adoption and the Paragon 28 acquisition are expected to provide growth support across multiple segments.
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