Zimmer Biomet (ZBH): Assessing Valuation as Shares Show Recent Momentum

Zimmer Biomet Holdings (ZBH) stock has caught some attention after recent trading sessions. The company’s performance metrics over the past month and quarter hint at shifts that could matter for investors evaluating its long-term outlook.

See our latest analysis for Zimmer Biomet Holdings.

After a stretch of modest volatility, Zimmer Biomet’s share price has picked up momentum lately, climbing 4.4% over the last week and 5.5% over the past quarter. Still, the bigger picture shows a muted 1-year total shareholder return of -0.6%, highlighting that short-term gains are only just starting to offset longer-term softness.

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The real question for investors now is whether Zimmer Biomet’s recent rally means the stock is still trading at a discount, or if the market has already factored in expectations for future growth and recovery.

Most Popular Narrative: 7.4% Undervalued

Zimmer Biomet’s narrative fair value ($110.92) sits above the last close price, suggesting more upside potential than the market currently prices in. The current numbers may not tell the full story, with several powerful catalysts highlighted by analysts.

The growing global elderly population and the rise in chronic lifestyle diseases are expected to accelerate procedure volumes for orthopedic implants and joint replacements. This is positioning Zimmer Biomet for long-term sustained revenue growth as demand structurally expands. Strategic acquisitions, such as Monogram Technologies and Paragon 28, are diversifying Zimmer Biomet into higher-growth market segments and introducing innovative, AI-driven robotics. This is projected to enhance future top-line growth and support higher returns on invested capital from 2027 onwards.

Read the complete narrative.

The key to this valuation? Expectations of robust growth from digital health, top-line acceleration fueled by cutting-edge robotics, and margin expansion. Want to see how analysts believe these levers will remake Zimmer Biomet’s earnings future? Uncover the bold projections and critical assumptions that drive this fair value estimate.

Result: Fair Value of $110.92 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, increasing competition in orthopedics and delays in regulatory approvals for new robotics could present challenges to Zimmer Biomet's growth pace and margin expansion.

Find out about the key risks to this Zimmer Biomet Holdings narrative.

Build Your Own Zimmer Biomet Holdings Narrative

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A great starting point for your Zimmer Biomet Holdings research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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