Zimmer Biomet Holdings, Inc. (ZBH), headquartered in Warsaw, Indiana, designs, manufactures, and sells medical equipment. Valued at $19.3 billion by market cap, the company offers orthopedic, dental, and spinal reconstructive implants, as well as bone cement and related surgical products.

Shares of medical device giant have underperformed the broader market over the past year. ZBH has declined 20.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 12.3%. In 2025, ZBH stock is down 9.8%, compared to the SPX’s marginal rise on a YTD basis. 

Narrowing the focus, ZBH’s underperformance is also apparent compared to the iShares U.S. Medical Devices ETF (IHI). The exchange-traded fund has gained about 10.5% over the past year. Moreover, the ETF’s 5.4% returns on a YTD basis outshine the stock’s losses over the same time frame.

On May 5, ZBH shares closed down more than 11% after reporting its Q1 results. Its adjusted EPS of $1.81 surpassed Wall Street expectations of $1.76. The company’s revenue was $1.91 billion, surpassing Wall Street forecasts of $1.89 billion. ZBH expects full-year adjusted EPS in the range of $7.90 to $8.10.

For the current fiscal year, ending in December, analysts expect ZBH’s EPS to decline marginally to $7.95 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.

Among the 27 analysts covering ZBH stock, the consensus is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, two “Moderate Buys,” 16 “Holds,” and two “Strong Sells.”

This configuration is less bullish than three months ago, with eight analysts suggesting a “Strong Buy.” 

On May 12, Canaccord kept a “Hold” rating on ZBH and lowered the price target to $101, implying a potential upside of 5.9% from current levels.

The mean price target of $107.21 represents a 12.5% premium to ZBH’s current price levels. The Street-high price target of $125 suggests a notable upside potential of 31.1%.