We came across a bullish thesis on Zimmer Biomet Holdings, Inc. on Valueinvesting subreddit by KnowledgePatient7813. In this article, we will summarize the bulls’ thesis on ZBH. Zimmer Biomet Holdings, Inc.'s share was trading at $97.55 as of July 25th. ZBH’s trailing and forward P/E were 21.68 and 12.27 respectively according to Yahoo Finance.
A healthcare professional putting the finishing touches on a patient's knee implant in an operating theater.
Zimmer Biomet (ZBH), one of the world’s largest makers of orthopedic implants, is viewed as a deeply undervalued turnaround story, trading at just ~12x forward earnings versus competitor Stryker’s 32x. The company manufactures artificial knees, hips, shoulders, and surgical tools, operating in a tightly regulated oligopoly with entrenched surgeon loyalty and high barriers to entry. Despite a durable franchise and structural tailwinds from an aging global population.
ZBH’s stock remains under pressure due to a troubled 2015 Zimmer-Biomet merger that led to recalls, supply chain issues, and market share losses—most notably to Stryker, whose Mako robotic system outperformed ZBH’s offerings. Recent cuts to 2025 guidance have reinforced doubts about management’s ability to execute a turnaround.
Yet, the long-term growth trajectory of joint replacements remains intact, and ZBH has begun addressing operational missteps. The 2022 spin-off of ZimVie simplified the business, and the acquisition of Monogram is aimed at strengthening its ROSA robotics platform to better compete in the high-growth robotic surgery segment. Importantly, the company’s entrenched surgeon relationships and FDA regulatory moat create a stickiness that is difficult for competitors to disrupt.
With the market pricing ZBH as if its core business is in terminal decline, even moderate operational improvements could drive substantial upside. Investors should watch for margin expansion, stabilization of market share in knees and hips, and tangible traction from ROSA. For value-focused investors, ZBH offers an attractive risk/reward profile: a hated stock with a resilient business model, secular growth tailwinds, and meaningful upside if execution improves.
Previously, we covered a bullish thesis on Zimmer Biomet Holdings, Inc. (ZBH) by QuestforYield in March 2025, which highlighted its market leadership, innovation pipeline, and strong free cash flow. The stock has depreciated about 6% since then due to execution concerns. The thesis stands as structural demand drivers remain intact. KnowledgePatient7813 shares a similar view but emphasizes the turnaround potential and undervaluation.
