We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zimmer Biomet Hits New 52-Week High: What's Driving It?
Read MoreHide Full Article
Shares of Zimmer Biomet Holdings, Inc. (ZBH - Free Report) reached a new 52-week high of $151.29 on Dec 23, closing the session marginally lower at $151.24. The stock has rallied 7.8% since its third-quarter earnings announcement on Nov 5.
The company’s strong third-quarter earnings results, backed by robust segmental and global revenue growth, prompted the rally.
Let us delve deeper.
Q3 Performance
The company exited the third quarter on a strong note, with better-than-expected earnings and revenue numbers. It witnessed year-over-year improvements in revenues in the majority of its segments as well as across Europe, Middle East and Africa (EMEA) and the Asia Pacific.
Zimmer Biomet is upbeat about continuing the recent trend in the EMEA and the Asia Pacific on product launches and strong customer adoptions. The company expects the trend to continue in the upcoming quarters as well.
Despite a rise in the cost of products sold, the company registered gross margin improvement on solid top-line performance. This also buoyed investors’ optimism.
Other Growth Drivers
Recent Approvals and Product Launches: Investors seem to be upbeat about the company as it provides some top-of-the-line products in the industry. Strong adoption of its products — 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) — is a key catalyst.
The company’s mymobility digital health platform (developed in partnership with Apple in October 2018) and the recent major launches of flagship products like Persona Partial and Persona Cementless instill optimism as well.
Partnership: Zimmer Biomet signed a multinational distribution agreement with Align Technology, with respect to the iTero Element family of intraoral scanners. The agreement is expected to expand the company’s footprint in the global digital restorative dentistry solutions market.
Execution of Growth Plans: The company progressed well with quality remediation in the third quarter. Completion of the detailed remediation plan on the Warsaw North campus is currently part of the company’s pipeline. Additionally, the company is gaining from the global rollout of the Quality Begins With Me program, which is focused on driving sustainable quality culture.
Zacks Rank & Key Picks
Currently, Zimmer Biomet carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) , NuVasive, Inc and ResMed Inc (RMD - Free Report) .
National Vision’s long-term earnings growth rate is estimated at 17.8%. The company currently carries a Zacks Rank #2.
ResMed’s long-term earnings growth rate is estimated at 14%. It currently carries a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Zimmer Biomet Hits New 52-Week High: What's Driving It?
Shares of Zimmer Biomet Holdings, Inc. (ZBH - Free Report) reached a new 52-week high of $151.29 on Dec 23, closing the session marginally lower at $151.24. The stock has rallied 7.8% since its third-quarter earnings announcement on Nov 5.
The company’s strong third-quarter earnings results, backed by robust segmental and global revenue growth, prompted the rally.
Let us delve deeper.
Q3 Performance
The company exited the third quarter on a strong note, with better-than-expected earnings and revenue numbers. It witnessed year-over-year improvements in revenues in the majority of its segments as well as across Europe, Middle East and Africa (EMEA) and the Asia Pacific.
Zimmer Biomet is upbeat about continuing the recent trend in the EMEA and the Asia Pacific on product launches and strong customer adoptions. The company expects the trend to continue in the upcoming quarters as well.
Despite a rise in the cost of products sold, the company registered gross margin improvement on solid top-line performance. This also buoyed investors’ optimism.
Other Growth Drivers
Recent Approvals and Product Launches: Investors seem to be upbeat about the company as it provides some top-of-the-line products in the industry. Strong adoption of its products — 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) — is a key catalyst.
The company’s mymobility digital health platform (developed in partnership with Apple in October 2018) and the recent major launches of flagship products like Persona Partial and Persona Cementless instill optimism as well.
Partnership: Zimmer Biomet signed a multinational distribution agreement with Align Technology, with respect to the iTero Element family of intraoral scanners. The agreement is expected to expand the company’s footprint in the global digital restorative dentistry solutions market.
Execution of Growth Plans: The company progressed well with quality remediation in the third quarter. Completion of the detailed remediation plan on the Warsaw North campus is currently part of the company’s pipeline. Additionally, the company is gaining from the global rollout of the Quality Begins With Me program, which is focused on driving sustainable quality culture.
Zacks Rank & Key Picks
Currently, Zimmer Biomet carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) , NuVasive, Inc and ResMed Inc (RMD - Free Report) .
Haemonetics, currently flaunting a Zacks Rank #2 (Buy), has a projected long-term earnings growth rate of 13.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
National Vision’s long-term earnings growth rate is estimated at 17.8%. The company currently carries a Zacks Rank #2.
ResMed’s long-term earnings growth rate is estimated at 14%. It currently carries a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>