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Here's Why Zimmer Biomet (ZBH) is a Strong Value Stock

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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Zimmer Biomet (ZBH)

Headquartered in Warsaw, IN, Zimmer Biomet is a leading musculoskeletal healthcare company that designs, manufactures and markets orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, bone healing, craniomaxillofacial and thoracic products; dental implants; and related surgical products. With operations in over 25 countries, Zimmer markets products in more than 100 countries.

ZBH sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Medical - Products industry's P/E of 22.7X, shares of Zimmer Biomet are trading at a forward P/E of 15X. ZBH also has a PEG Ratio of 2.2, a Price/Cash Flow ratio of 10X, and a Price/Sales ratio of 3.4X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. 11 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.02 to $8.10 per share. ZBH has an average earnings surprise of 2.5%.

ZBH should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report

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Zacks Investment Research