Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight 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 #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 16.1X for the current fiscal year compared to the Medical - Products industry's P/E of 19.2X. Additionally, ZBH has a PEG Ratio of 2.4 and a Price/Cash Flow ratio of 9.5X. Value investors should also note ZBH's Price/Sales ratio of 3.5X.
A company's earnings performance is important for value investors as well. For fiscal 2023, 13 analysts revised their earnings estimate higher in the last 60 days for ZBH, while the Zacks Consensus Estimate has increased $0.06 to $7.51 per share. ZBH also holds an average earnings surprise of 4.5%.
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
