Trade-Ideas LLC identified

Zimmer Biomet Holdings

(

ZBH

) as a new lifetime high 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 $150.3 million.
  • ZBH has traded 28,168 shares today.
  • ZBH is trading at a new lifetime high.

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More details on ZBH:

Zimmer Biomet Holdings, Inc., together with its subsidiaries, provides musculoskeletal healthcare products and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The stock currently has a dividend yield of 0.8%. ZBH has a PE ratio of 415. Currently there are 16 analysts that rate Zimmer Biomet Holdings a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Zimmer Biomet Holdings has been 1.6 million shares per day over the past 30 days. Zimmer Biomet has a market cap of $24.8 billion and is part of the health care sector and health services industry. The stock has a beta of 1.06 and a short float of 3% with 4.99 days to cover. Shares are up 20.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Zimmer Biomet Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • ZBH's very impressive revenue growth greatly exceeded the industry average of 5.7%. Since the same quarter one year prior, revenues leaped by 67.8%. 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.
  • Net operating cash flow has significantly increased by 189.83% to $265.20 million when compared to the same quarter last year. In addition, ZIMMER BIOMET HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -17.43%.
  • The gross profit margin for ZIMMER BIOMET HOLDINGS INC is currently very high, coming in at 82.04%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ZBH's net profit margin of 5.56% significantly trails the industry average.
  • ZIMMER BIOMET HOLDINGS INC's earnings per share declined by 47.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, ZIMMER BIOMET HOLDINGS INC reported lower earnings of $0.72 versus $4.20 in the prior year. This year, the market expects an improvement in earnings ($7.95 versus $0.72).
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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