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How Has Zimmer Biomet’s Stock Performed?

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Stock performance

Zimmer Biomet Holdings (ZBH) was trading at $128.6 on September 28, 2016, with a 50-day moving average of $127.9 and a 200-day moving average of $120.2. The company was formed from the acquisition of Biomet by Zimmer Holdings in June 2015. The integration was completed in 2Q16, and the company posted strong revenue growth. For a brief overview of the company after the integration, read How Is Zimmer Biomet Positioned after Its Integration Completion?

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On September 28, 2016, Zimmer Biomet Holdings was trading ~45.6% above its 52-week low of $133.2 on August 9, 2016, and ~3.4% below its 52-week high of $88.3 on February 12, 2016. Zimmer Biomet Holdings’ stock price rose more than 3% after the release of its 2Q16 results on July 28, 2016. The company’s earnings and revenues exceeded analysts’ estimates, and Zimmer Biomet raised its fiscal 2016 guidance. Since July 28, 2016, the company’s stock has traded between $123.4 and $133.1.

Comparisons with industry and market performances

Zimmer Biomet’s stock has returned ~36.2% in the past 12 months. The company’s stock has outperformed the market as represented by the S&P 500 Index, which has returned ~12.4% during the same period.

Zimmer Biomet’s stock performance can also be compared to the US medical device sector performance as represented by the iShares U.S. Medical Devices ETF (IHI). ZBH has returned ~25.5% on a YTD (year-to-date) basis. This figure compares to the 5.2% and 17.8% returns generated by the market and the iShares U.S. Medical Devices ETF, respectively.

As of September 28, 2016, Zimmer Biomet’s peers Abbott Laboratories (ABT), Medtronic (MDT), and Stryker (SYK) have generated returns of 34.2%, 2%, and 34.3%, respectively, during the past 12 months.

In the next part of this series, let’s look at Zimmer Biomet’s latest acquisition of Clinical Graphics.

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