Over the last couple of years, Zimmer has been a stable performer with modest capital appreciation. It has done better over the last one year with around 18% growth. Prior to that, it was volatile and did not do much for the investors. The dividends have also been inconsistent, and the yields are low (around 1%). The fundamentals have also remained sluggish. The revenues and net income have grown, but the pace of growth has declined. The last quarter also, the revenues had declined slightly, and the net income has shown about 4% growth. All this sluggishness has resulted in slow growth in the stock. The recent peak was $82 and it has corrected by about 7-8% from there. It is now trading at round 17 times trailing earnings and the forward P/E is 12. The leverage position has improved in the last quarter with decline in total debt from $1.82 billion to $1.7 billion. The current ratio of 4.5 and cash of $1.2 billion on March 31 indicates good liquidity position. With the medical devices industry expected to grow reasonably well over the next few years, Zimmer can leverage the overall growth to its advantage. It may grow with new products and in new markets. Innovation is the key in this segment and even smaller medical device companies like PLC Systems (PLCSF) have been able to build a patent portfolio around their innovative proprietary technologies. Emerging markets offer good opportunities for growth. Zimmer has to focus on specific countries / markets to expand its horizons. Currently US contributes 56% of the sales and Europe comes next with 26%. Asia Pacific contributes only 18%, and that perhaps has the maximum growth potential. If the company is able to increase the pace of growth, the stock will surely catch up and show strength and momentum.