Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Zimmer Holdings as such a stock due to the following factors:
- ZMH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $122.2 million.
- ZMH has traded 22,329 shares today.
- ZMH is trading at a new lifetime high.
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More details on ZMH:
Zimmer Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and markets orthopedic 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 0.9%. ZMH has a PE ratio of 21.6. Currently there are 13 analysts that rate Zimmer Holdings a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Zimmer Holdings has been 1.2 million shares per day over the past 30 days. Zimmer has a market cap of $16.5 billion and is part of the health care sector and health services industry. The stock has a beta of 0.81 and a short float of 3% with 4.51 days to cover. Shares are up 4.9% year-to-date as of the close of trading on Wednesday.
rates Zimmer Holdings as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- ZIMMER HOLDINGS INC has improved earnings per share by 6.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ZIMMER HOLDINGS INC increased its bottom line by earning $4.43 versus $4.29 in the prior year. This year, the market expects an improvement in earnings ($6.05 versus $4.43).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Health Care Equipment & Supplies industry average. The net income increased by 7.2% when compared to the same quarter one year prior, going from $154.40 million to $165.50 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 3.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ZMH's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, ZMH has a quick ratio of 2.47, which demonstrates the ability of the company to cover short-term liquidity needs.
- You can view the full Zimmer Holdings Ratings Report.