Zimmer Biomet Holdings (ZBH) Marked As A Barbarian At The Gate
Trade-Ideas LLC identified
(
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Zimmer Biomet Holdings as such a stock due to the following factors:
- ZBH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $95.1 million.
- ZBH has traded 52,671 shares today.
- ZBH traded in a range 249.6% of the normal price range with a price range of $4.47.
- ZBH traded above its daily resistance level (quality: 98 days, meaning that the stock is crossing a resistance level set by the last 98 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on ZBH:
Zimmer Biomet Holdings, Inc., together with its subsidiaries, designs, develops, manufactures, and markets orthopaedic reconstructive devices, spinal and trauma devices, biologics, dental implants, and related surgical products in the Americas, Europe, and the Asia Pacific. The stock currently has a dividend yield of 0.8%. ZBH has a PE ratio of 105. Currently there are 16 analysts that rate Zimmer Biomet Holdings a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Zimmer Biomet Holdings has been 1.4 million shares per day over the past 30 days. Zimmer Biomet has a market cap of $21.3 billion and is part of the health care sector and health services industry. The stock has a beta of 1.12 and a short float of 2.8% with 5.23 days to cover. Shares are down 7.5% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Zimmer Biomet Holdings as a
. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- ZBH's very impressive revenue growth exceeded the industry average of 37.8%. Since the same quarter one year prior, revenues leaped by 59.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for ZIMMER BIOMET HOLDINGS INC is currently very high, coming in at 82.83%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 1.25% trails the industry average.
- ZIMMER BIOMET HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ZIMMER BIOMET HOLDINGS INC reported lower earnings of $4.20 versus $4.54 in the prior year. This year, the market expects an improvement in earnings ($6.85 versus $4.20).
- Net operating cash flow has decreased to $151.30 million or 40.82% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The share price of ZIMMER BIOMET HOLDINGS INC has not done very well: it is down 5.62% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full Zimmer Biomet Holdings Ratings Report.
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