Stock Entry Point Article​

Zimmer Biomet Holdings – Health Care Stocks To Buy Now

If there are two sectors that have done alright during the year 2020, it’s technology and healthcare. Within healthcare, pharmaceutical companies and other specific niches are worth looking at. Zimmer Biomet is a company that specializes in orthopedic implants. It designs, manufactures, and markets equipment and supplies for orthopedic surgery. Zimmer Biomet has the leading share in the reconstructive market and 60% of its total revenue comes from the sale of large joints. 22% of revenues come from trauma and extremities while the remaining revenue comes from spinal and dental products.

A Background Of Zimmer Biomet

Zimmer Biomet was founded in 1927 in Warsaw, Indiana. At the time, it used to produce aluminum splints. In 2001, it was spun off from Bristol-Myers Squibb and it started trading under the symbol ZBH on the New York Stock Exchange. Zimmer acquired Centerpulse in 2003 and then Biomet in 2015. These acquisitions have made Zimmer Biomet a leader in the medical reconstructive surgery market. Zimmer is very strong in the hip and knee reconstruction sectors. A rising population of aging baby boomers and a higher prevalence of obesity are key drivers of demand for joint replacement procedures. Market share shifts in the orthopedic implants industry do not happen very fast because of the close relationship between surgeons and vendors like Zimmer Biomet.  

Stock Performance Of The Best Medical Stock To Buy Now

Zimmer Biomet’s stock has bounced back from a low of around 80, seen in the March market crash, to 140 currently as of December 2020. Healthcare facilities operator HCA has also bounced back strongly from a low of around 80 to 157. Zimmer Biomet’s larger peer is Stryker Corporation. It is also very well-known for its implant products. Its stock went from a low of 130 to 230. Smith and Nephew, another peer of Zimmer Biomet, has risen less significantly from 26 to 39. But, in general, all of these stocks have seen significant gains over the past 9 months.


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