Strength Seen in Zimmer (ZBH): Can Its 3.8% Jump Turn into More Strength?
Zimmer Biomet ZBH shares soared 3.8% in the last trading session to close at $142.01. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.5% gain over the past four weeks.
Zimmer Biomet recorded a strong price rise on investors’ optimism, following the company outpacing its internal growth expectations with the first quarter’s performance backed by continued procedure recovery, solid execution and increasing traction around innovations.
Additionally, market is also upbeat about the company’s updated full-year 2023 outlook for reported revenue growth of 5%-6% (previously 1.5%-3.5%) and adjusted earnings per share of $7.40 - $7.50 (earlier $6.95-$7.15).
This orthopedic device maker is expected to post quarterly earnings of $1.81 per share in its upcoming report, which represents a year-over-year change of -0.6%. Revenues are expected to be $1.82 billion, up 2.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Zimmer, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ZBH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Zimmer belongs to the Zacks Medical - Products industry. Another stock from the same industry, LeMaitre Vascular LMAT, closed the last trading session 1.6% higher at $67.63. Over the past month, LMAT has returned 3.3%.
For LeMaitre , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.32. This represents a change of +10.3% from what the company reported a year ago. LeMaitre currently has a Zacks Rank of #2 (Buy).
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Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report
LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report
