Zimmer Biomet (ZBH): Exploring Valuation After Recent Sector Pressure and Shifting Momentum

Zimmer Biomet Holdings (ZBH) stock has seen gradual shifts lately, prompting investors to review recent performance and underlying trends. The company’s share price has slid over the past month and past 3 months, reflecting broader pressures across the medical device sector.

See our latest analysis for Zimmer Biomet Holdings.

Zooming out, Zimmer Biomet Holdings’ momentum has clearly faded over the past year. Share price returns have slipped, and the total shareholder return was -18% for the last twelve months. Following some sector-wide volatility and a series of recent declines, the stock is still looking for solid footing as investors weigh its long-term growth prospects against ongoing uncertainty.

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Given these lackluster returns, the question is whether Zimmer Biomet Holdings now represents a value overlooked by the market, or if current prices already account for any future growth ahead. Is this a buying opportunity or not?

Most Popular Narrative: 15.6% Undervalued

With a fair value estimate of $104.84 and a last close of $88.51, Zimmer Biomet Holdings is trading significantly below the narrative’s calculated valuation, creating potential intrigue around its future prospects and justifying a closer look at what is driving this gap.

The company's focused investment in digital health, robotics, and data-driven surgical solutions (including the ROSA and upcoming Monogram platforms) is increasing adoption of premium offerings, enabling margin expansion due to product mix and driving recurring revenues through connected care ecosystems. This supports higher net margins and earnings predictability.

Read the complete narrative.

Wondering what powers this story of potential outperformance? The most popular narrative relies on forward-looking financial assumptions around margins, tech-fueled growth, and ambitious product launches. Only by digging deeper will you uncover which future milestones matter most for the valuation and why the gap could close fast or widen further.

Result: Fair Value of $104.84 (UNDERVALUED)

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

However, ongoing pricing pressures and delays in regulatory approvals could present challenges to Zimmer Biomet’s growth narrative and may slow the momentum for its latest innovations.

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

Build Your Own Zimmer Biomet Holdings Narrative

If you see things differently, or want to dive into the numbers yourself, you can shape your own Zimmer Biomet Holdings story in just minutes. Do it your way

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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