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Zimmer Biomet Holdings, Inc. (ZBH), headquartered in Warsaw, Indiana, designs, manufactures, and sells medical equipment. Valued at $18.7 billion by market cap, the company offers orthopedic, dental, and spinal reconstructive implants, as well as bone cement and related surgical products.
Shares of medical device giant have underperformed the broader market over the past year. ZBH has declined 3.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.6%. In 2026, ZBH stock is up 10.7%, compared to the SPX’s 13.9% rise on a YTD basis.
Narrowing the focus, ZBH’s outperformance is apparent compared to the iShares U.S. Medical Devices ETF (IHI). The exchange-traded fund has declined about 9.2% over the past year. Moreover, the stock’s low double-digit returns on a YTD basis outshine the ETF’s 9.7% losses over the same time frame.
ZBH’s mixed performance reflects strong domestic momentum that was partially offset by persistent operational and international hurdles. Growth was primarily fueled by U.S. hip market share gains via its "hip triple play," over 50% domestic expansion in technology and ROSA robotics, and robust S.E.T. sales following the Paragon 28 acquisition. However, these gains were diluted by international headwinds, such as China's volume-based procurement, alongside price erosion and softness in non-core trauma and restorative therapies. Furthermore, operating margins faced short term pressure as the company heavily invested in transforming its U.S. sales force and establishing new manufacturing facilities in Costa Rica and India.
On Aug. 5, ZBH shares closed up by 2.5% after reporting its Q2 results. Its adjusted EPS of $2.07 surpassed Wall Street expectations of $2.01. The company’s revenue was $2.2 billion, exceeding Wall Street forecasts of $2.1 billion. ZBH expects full-year adjusted EPS in the range of $8.47 to $8.59.
For the current fiscal year, ending in December, analysts expect ZBH’s EPS to grow 4% to $8.53 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 29 analysts covering ZBH stock, the consensus is a “Hold.” That’s based on seven “Strong Buy” ratings, one “Moderate Buy,” 18 “Holds,” and three “Strong Sells.”
This configuration is more bullish than a month ago, with six analysts suggesting a “Strong Buy,” and two recommending a “Strong Sell.”
On Aug. 11, Truist Financial Corporation (TFC) analyst Richard Newitter maintained a “Hold” rating on ZBH and set a price target of $106, implying a potential upside of 6.5% from current levels.
The mean price target of $104.67 represents a 5.1% premium to ZBH’s current price levels. The Street-high price target of $125 suggests an upside potential of 25.5%.
