Zimmer Biomet: Trading above 100-Day Moving Average
IHI Remained Flat Yesterday, Hovering Around Its 52-Week High
IHI moving averages
The iShares US Medical Devices (IHI) held 49 stocks in its portfolio as of April 14, 2016. Moving averages are important because they give investors an idea of which direction the stock is trading. As of April 14, 80% of IHI’s holdings were trading above their 100-day moving averages. About 98% of IHI’s holdings were trading above their 50-day moving averages, and 98% were trading above their 20-day moving averages.
The above graph reflects the percentage of IHI holdings that are trading above various moving averages. Of the 49 stocks that IHI has in its portfolio, 39 stocks were trading above their 100-day moving averages, and 48 were trading above their 50-day and 20-day moving averages.
Zimmer Biomet is trading above its 100-day moving average
Zimmer Biomet (ZBH), Edwards Lifesciences (EW), Waters (WAT), and Hologic (HOLX) are all trading above their 100-day moving averages. Except for Edwards Lifesciences, the stocks rose from their previous day’s close. In a press release, Zimmer Biomet said it will announce its 1Q16 earnings on April 28, 2016. The company recorded net sales of $6 billion in 2015. Analysts expect 2016 earnings to be ~$7.5 billion.
Zimmer Biomet closed at $115.43 and was trading above its 20-day and 100-day moving averages. Year-to-date, the stock has risen 12.5%. RSI (relative strength index) is at 84, indicating that the stock has temporarily moved into an overbought situation. Approximately 18% of IHI’s holdings are in an overbought situation.
Zimmer Biomet has a book value of $48.78 per share. At its current price, the stock is trading at a price-to-book value of ~2.4x. It’s also trading at a 2016 forward price-to-earnings multiple of ~14.6x. Zimmer Biomet has a weight of ~3.9% in IHI’s portfolio.
Browse this series on Market Realist:
