Is Zimmer Biomet Stock Underperforming the S&P 500?

With a market cap of $17.1 billion, Zimmer Biomet Holdings, Inc. (ZBH) is a leading global medical technology company that specializes in orthopedic implants, surgical products, and digital solutions designed to improve mobility and musculoskeletal health. Headquartered in Warsaw, Indiana, the company traces its roots back to 1927 and operates in more than 100 countries.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and Zimmer Biomet fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the medical devices industry. Its competitive advantages stem from its strong position as one of the world's largest orthopedic device manufacturers, supported by a broad portfolio of hip, knee, shoulder, and trauma implants, as well as advanced surgical technologies. The company benefits from well-established relationships with hospitals and surgeons, a globally recognized brand, and significant scale that supports research, innovation, and distribution. 

Despite the notable strengths, Zimmer Biomet stock has slipped 18.2% from its 52-week high of $108.29 achieved on Aug. 26, 2025. The stock has slumped 4.3% over the past three months, compared to the S&P 500 Index’s ($SPX) 11.4% rise.

Moreover, ZBH has dipped 1.5% on a YTD basis and slumped 5% over the past 52 weeks, well below the index’s 8.6% and 22.9% returns over the same time frames, respectively. 

After a turbulent year marked by sharp swings, Zimmer Biomet shares have remained under pressure, trading below their 200-day moving average since early March. However, the stock has recently shown signs of regaining momentum, climbing back above its 50-day moving average. 

   Despite benefiting from an aging population and resilient demand for orthopedic procedures, Zimmer Biomet has trailed the broader market over the past year as investors have grown increasingly concerned about its sluggish growth profile. Modest revenue gains, a muted sales outlook, and underwhelming returns on past investments have dampened enthusiasm, prompting many investors to gravitate toward faster-growing opportunities in healthcare and technology. 

Zimmer Biomet has outperformed its peer Medtronic plc (MDT), which has declined 16.5% on a YTD basis and 9.4% over the past year.

However, ZBH has a consensus “Hold” rating among the 27 analysts covering it. The mean price target of $98.24 represents a 10.9% premium to current price levels.