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Zimmer (ZBH) Scales 52-Week High: What's Driving the Stock?
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Shares of Zimmer Biomet Holdings, Inc. (ZBH - Free Report) reached a 52-week high of $144.96 on Nov 8, closing the session marginally lower at $144.
In the past year, shares of this Zacks Rank #3 (Hold) company have rallied 25.8% compared with the industry’s rise of 4.2%. The current level also compares favorably with the S&P 500 index’s decline of 12.8%.
It has surpassed the Zacks Consensus Estimate by 0.4%, on average, in the trailing four quarters.
The estimate revision trend for the current year is impressive as well. In the past seven days, the Zacks Consensus Estimate for the company’s earnings per share climbed to $7.83 from $7.82.
Zimmer, being a player in musculoskeletal healthcare products, is expected to scale new highs in the near term.
Factors Working in Favor
Solid Execution of Growth Plans: The company has progressed well with respect to quality remediation in the third quarter and is currently on track to complete its detailed remediation plan on the Warsaw North campus by the end of 2019. Additionally, the company is gaining from the global rollout of the Quality Begins With Me program, which is focused on driving sustainable quality culture.
Product Portfolio: Investors seem to be upbeat about the company on providing some top-of-the-line products in the industry. Strong adoption for its products like Persona Revision Knee System (which was recently launched commercially), JuggerStitch meniscal repair device, The Tether for treatment of scoliosis and ROSA ONE Spine System (recently cleared for use by the FDA) buoy optimism.
Growth Potential: Investors are also optimistic about Zimmer’s growing market prospects fueled by improved procedural volume. This was driven by favorable demographics and growing utilization of musculoskeletal healthcare in emerging markets and under-penetrated developed markets. Also, the changing demographic patterns (increase in the elderly population) are boosting the company’s sales by driving the market for replacement products due to age-related wearing out of bones.
Product Launches: The company’s mymobility digital health platform (developed in partnership with Apple) and the flagship Persona Partial and Persona Cementless are among the major launches of recent times. These instill optimism as well.
Stocks to Consider
A few better-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) , NuVasive, Inc and GW Pharmaceuticals plc .
NuVasive, with a Zacks Rank #2 (Buy), has a projected long-term earnings growth rate of 10.9%.
GW Pharmaceuticals estimates fourth-quarter earnings growth rate at 67.9%. It currently carries a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Zimmer (ZBH) Scales 52-Week High: What's Driving the Stock?
Shares of Zimmer Biomet Holdings, Inc. (ZBH - Free Report) reached a 52-week high of $144.96 on Nov 8, closing the session marginally lower at $144.
In the past year, shares of this Zacks Rank #3 (Hold) company have rallied 25.8% compared with the industry’s rise of 4.2%. The current level also compares favorably with the S&P 500 index’s decline of 12.8%.
It has surpassed the Zacks Consensus Estimate by 0.4%, on average, in the trailing four quarters.
The estimate revision trend for the current year is impressive as well. In the past seven days, the Zacks Consensus Estimate for the company’s earnings per share climbed to $7.83 from $7.82.
Zimmer, being a player in musculoskeletal healthcare products, is expected to scale new highs in the near term.
Factors Working in Favor
Solid Execution of Growth Plans: The company has progressed well with respect to quality remediation in the third quarter and is currently on track to complete its detailed remediation plan on the Warsaw North campus by the end of 2019. Additionally, the company is gaining from the global rollout of the Quality Begins With Me program, which is focused on driving sustainable quality culture.
Product Portfolio: Investors seem to be upbeat about the company on providing some top-of-the-line products in the industry. Strong adoption for its products like Persona Revision Knee System (which was recently launched commercially), JuggerStitch meniscal repair device, The Tether for treatment of scoliosis and ROSA ONE Spine System (recently cleared for use by the FDA) buoy optimism.
Growth Potential: Investors are also optimistic about Zimmer’s growing market prospects fueled by improved procedural volume. This was driven by favorable demographics and growing utilization of musculoskeletal healthcare in emerging markets and under-penetrated developed markets. Also, the changing demographic patterns (increase in the elderly population) are boosting the company’s sales by driving the market for replacement products due to age-related wearing out of bones.
Product Launches: The company’s mymobility digital health platform (developed in partnership with Apple) and the flagship Persona Partial and Persona Cementless are among the major launches of recent times. These instill optimism as well.
Stocks to Consider
A few better-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) , NuVasive, Inc and GW Pharmaceuticals plc .
Haemonetics, currently sporting a Zacks Rank #1 (Strong Buy), has a projected long-term earnings growth rate at 13.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
NuVasive, with a Zacks Rank #2 (Buy), has a projected long-term earnings growth rate of 10.9%.
GW Pharmaceuticals estimates fourth-quarter earnings growth rate at 67.9%. It currently carries a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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