Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Recently, Zimmer Holdings Inc. (ZMH - Analyst Report) introduced its first lateral plate system for the spinal trauma segment titled Zimmer V2F Anterior Fixation System. The company’s new implant system can be used as a remedy for thoracolumbar burst fractures, tumors, disc degeneration and other pathologies of the anterior spine.

Zimmer’s V2F system, built on the company’s proprietary technology, includes a wide range of plates and screws to suit the varying anatomy of the thoracolumbar spine. The system offers flexibility for placement of screws at different angles to fit the patient’s anatomical structure. Based on the unique variable-to-fixed screw and cap technology, the V2F system is expected to improve patient outcomes.

The company currently enjoys 3% share in the $9 billion spinal market. This is expected to improve going forward as Zimmer is working on portfolio expansion and works to gain a foothold in the emerging markets.

We note that revenues from spinal products (accounting for approximately 5% of total revenues) have been languishing over the last few quarters. We are encouraged by Zimmer’s attempt to expand its spinal portfolio to provide some cushion to its struggling sales.

Neutral on Zimmer

Given the challenging macroeconomic conditions, the company’s strategy of new product launches, employment of new technologies and expansion into emerging markets is likely to pay off. Its peers in the reconstructive market Smith & Nephew (SNN - Snapshot Report) and Stryker Corporation (SYK - Analyst Report) have adopted the inorganic route to battle macroeconomic headwinds.

The situation is expected to improve as procedural deferrals reduce with time. As the situation gradually improves, Zimmer is well poised in the industry to reap the benefits of a recovering economy. Given the lack of positive driving events, the stock carries a Zacks Rank #3 (Hold).

Though we remain non-committal on this provider of reconstructive implant and trauma products we look forward to other players in the orthopedic space such as Hanger Orthopedic (HGR) which carries Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%