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Zimmer Biomet Stock Regains Momentum: What’s Driving Growth?

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Stock performance

Zimmer Biomet Holdings (ZBH) was trading at $127.90 on June 29, 2017. It has a 50-day moving average of $123.40 and a 200-day moving average of $117.80. Its 52-week low stands at $95.60, reported on November 14, 2016, and its 52-week high is $133.20, reported on October 10, 2016. As of June 30, 2017, ZBH stock was trading ~34.0% above its 52-week low and approximately 4.0% below its 52-week high.

The company’s stock has risen about 2.1% since its 1Q17 earnings release on April 27, 2017. In 1Q17, the company posted strong results, exceeding analysts’ estimates, but ZBH stock fell ~6.0% the day of the release due to lowered guidance for 2017. For more information on the company’s revised guidance, read What Prompted Downward Revision in Zimmer Biomet’s Guidance?

As of June 30, 2017, Zimmer Biomet’s peers Thermo Fisher Scientific (TMO), Stryker (SYK), and Abbott Laboratories (ABT) generated returns of about 19.6%, 19.1%, and 28.5%, respectively, over the last 12 months.

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Comparisons with industry and market performances

Zimmer Biomet Holdings has risen about 9.6% in the past 12 months. The stock has underperformed the SPDR S&P 500 Index (SPY), which rose ~18.8% during the same period. However, the company is expected to witness an upward price trajectory in the long term, driven by the strength of its market position and strategic initiatives to accelerate the company’s growth. For more, read Zimmer Biomet Holdings: What’s Driving All That Growth in 2017?

The company has been gaining momentum after its 52-week low in November 2016. It has risen ~24.0% on a year-to-date basis, which compares to 8.0% and 22.0% year-to-date returns for SPY and the iShares US Medical Devices (IHI), respectively. ZBH’s stock performance is compared to the performance of IHI, which represents the US medical device sector.

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