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Why Zimmer Biomet (ZBH) is a Top Value Stock for the Long-Term

Zacks Equity Research
·2-min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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Zimmer Biomet (ZBH)

Headquartered in Warsaw, IN, Zimmer Biomet is a leading musculoskeletal healthcare company that designs, manufactures and markets orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, bone healing, craniomaxillofacial and thoracic products; dental implants; and related surgical products. With operations in over 25 countries, Zimmer markets products in more than 100 countries.

ZBH is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 16X for the current fiscal year compared to the Medical - Products industry's P/E of 21.9X. Additionally, ZBH has a PEG Ratio of 2.4 and a Price/Cash Flow ratio of 10.7X. Value investors should also note ZBH's Price/Sales ratio of 3.6X.

Many value investors pay close attention to a company's earnings as well. For ZBH, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $8.07 per share for 2024. Per share ZBH boasts an average earnings surprise of 5%.

ZBH should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research