ZBH’s stock performance
Zimmer Biomet Holdings (ZBH) has fallen around 0.8% over the last one week. Over the last one month, the stock registered returns of around 3.7%. ZBH stock was trading at a closing price of $115.5 on September 19, 2017. The stock is currently trading higher than its 50-day moving average of $114.50 and lower than its 200-day moving average of $120.75. The stock’s 52-week low of $95.63 was reported on November 14, 2016, while its 52-week high of $133.49 was registered on July 17, 2017.
Since its latest earnings release on July 27, 2017, when the company reported lower-than-expected earnings results, ZBH stock has fallen 10.3%. On the day, ZBH stock had lost around 25% due to the disappointing results. Also, on the 1Q17 earnings release, ZBH stock lost around 6% on account of the lowered full-year 2017 guidance. The results, however, exceeded estimates. The company had received a subpoena from the US Health & Human Services Department on August 9, 2017. The stock fell around 2% on the day.
Comparisons with industry and market performances
Zimmer Biomet Holdings has registered a decline of around 7.1% in its stock price over the past 12 months. If we compare the stock performance with that of the market, as represented by the SPDR S&P 500 Index (SPY), we can see that the ZBH stock underperformed the market by high proportions. SPY has registered a price rise of around 17.1% in the past 12 months.
Let’s consider the industry performance over the same period. The iShares US Medical Devices ETF (IHI) returned ~17.6% over the past one year. However, on a YTD (year-to-date) basis, ZBH stock has performed at par with the broader market but has largely underperformed the industry. ZBH stock rose around 11.9% on a YTD basis as compared to the approximately 11.9% and 26.1% returns registered by the SPY and IHI, respectively, over the same period.