Zimmer Biomet ZBH shares soared 4.2% in the last trading session to close at $119.27. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.3% loss over the past four weeks.
Zimmer Biomet recorded a strong price increase following its announcement of its inking an exclusive, multi-year co-marketing agreement with Surgical Planning Associates, Inc. to commercialize the FDA-approved HipInsight mixed reality navigation system for total hip replacement. The novel mixed reality navigation system has been tailored particularly for Zimmer Biomet's hip implant portfolio. The HipInsight is the most recent addition to the OptiVu Mixed Reality portfolio of applications, which has strengthened the capabilities of ZBEdge suite of integrated smart, digital and robotic technologies, which are intended to deliver transformative data-powered insights to optimize patient outcomes.
This orthopedic device maker is expected to post quarterly earnings of $1.56 per share in its upcoming report, which represents a year-over-year change of -13.8%. Revenues are expected to be $1.63 billion, down 15.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Zimmer, the consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ZBH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Zimmer belongs to the Zacks Medical - Products industry. Another stock from the same industry, Cerus CERS, closed the last trading session 2.9% higher at $4.27. Over the past month, CERS has returned -20.7%.
Cerus' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.06. Compared to the company's year-ago EPS, this represents a change of +14.3%. Cerus currently boasts a Zacks Rank of #2 (Buy).
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