Here's Why Zimmer Biomet (ZBH) is a Strong Value Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Zimmer Biomet (ZBH)
Headquartered in Warsaw, IN, Zimmer Biomet is a leading musculoskeletal healthcare company that designs, manufactures and markets orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, bone healing, craniomaxillofacial and thoracic products; dental implants; and related surgical products. With operations in over 25 countries, Zimmer markets products in more than 100 countries.
ZBH is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 15.4X for the current fiscal year compared to the Medical - Products industry's P/E of 19.2X. Additionally, ZBH has a PEG Ratio of 2.1 and a Price/Cash Flow ratio of 10.2X. Value investors should also note ZBH's Price/Sales ratio of 3.4X.
A company's earnings performance is important for value investors as well. For fiscal 2024, 12 analysts revised their earnings estimate higher in the last 60 days for ZBH, while the Zacks Consensus Estimate has increased $0.13 to $8.07 per share. ZBH also holds an average earnings surprise of 5%.
Investors should take the time to consider ZBH for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report
