Zimmer Biomet (ZBH)
NYSEHealth CareMedical - DevicesSnapshot 2026-09-04
$98.07-0.86%
Close 2026-09-04 · 1-day change
NYSEHealth CareMedical - DevicesSnapshot 2026-09-04
Intact: The reason to own it still holds.
Zimmer Biomet grows revenue about 3% to 4.5% in 2026. Adjusted EPS is raised to about $8.47 per share. The company plans to repurchase up to $1 billion of shares in 2026. Recent acquisitions expand product offerings and support growth.
Growth faces headwinds that may slow revenue below 3%. Management changes and new debt raise uncertainty. Profit margins and EPS could weaken if execution falters.
The stock price is about 25% below our fair value near $120. Analysts expect roughly 3% revenue growth. Our view is slightly more optimistic on growth and EPS than consensus.
Breaks if: Adjusted EPS falls below $8.40 in FY26
Breaks if: Repurchases fall significantly short of $1 billion in FY26
Breaks if: YoY revenue growth falls below 2.5% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
ZBH represents a durable compounder with a focus on steady revenue and earnings growth. The current thesis is intact, with management making progress on key priorities like share repurchases and EPS guidance.
The market currently prices ZBH as justified, with a low expectations gap compared to peers. It is seen as relatively cheap versus its industry counterparts, which may reflect a cautious outlook.
Fundamentals are expected to remain strong, with management on track to meet revenue growth targets and increase EPS guidance. However, there is moderate risk due to potential economic headwinds affecting the healthcare sector.
The thesis hinges on management's ability to maintain guidance and deliver on growth targets. Additionally, the performance of sector peers like ABT, MDT, and SYK will be crucial in shaping market sentiment.
The most important moves since the prior daily snapshot.
Signal changed from 'favorable' to 'mild_favorable'.
Mixed, the news cuts both ways. The latest earnings beat and raised guidance support growth objectives. However, growth concerns may hinder the increase in EPS guidance for 2026.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Target full-year 2026 revenue growth in the range of approximately 2.5% to 4.9%, including organic and constant currency growth.
Stated as a priority in 3 of last 3 quarters. Revenue grew from $8.232 billion in 2025 to an estimated $8.467 billion in 2026, reflecting 3.9% to 4.9% growth guidance. Actual reported revenue in 2026-Q1 and Q2 showed growth consistent with this guidance, indicating delivery on this priority.
“Updated Guidance 2026 Reported Revenue Change 3.9% - 4.9%”
“2026 Reported Revenue Change 2.5% - 4.5%”
“The Company is providing the following full-year 2026 financial guidance: 2026 Reported Revenue Change 2.5% - 4.5%”
Overall, ZBH is positioned well for the next few years, but external factors could impact its trajectory. Not investment advice.