Price Don’t Lie: Bearish Gap Down for Zimmer Biomet Holdings Inc After Worse Fundamentals

Price Don't Lie: Bearish Gap Down for Zimmer Biomet Holdings Inc After Worse Fundamentals

The stock of Zimmer Biomet Holdings Inc (NYSE:ZBH) gapped down by $11.92 today and has $100.41 target or 5.00% below today’s $105.69 share price. The 8 months technical chart setup indicates high risk for the $21.35 billion company. The gap down was reported on Oct, 31 by Barchart.com. If the $100.41 price target is reached, the company will be worth $1.07B less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. About 10.08 million shares traded hands or 842.06% up from the average. Zimmer Biomet Holdings Inc (NYSE:ZBH) has risen 15.79% since March 29, 2016 and is uptrending. It has outperformed by 12.31% the S&P500.

Analysts await Zimmer Biomet Holdings Inc (NYSE:ZBH) to report earnings on November, 3. They expect $1.79 EPS, up 9.15% or $0.15 from last year’s $1.64 per share. ZBH’s profit will be $361.59M for 14.76 P/E if the $1.79 EPS becomes a reality. After $2.02 actual EPS reported by Zimmer Biomet Holdings Inc for the previous quarter, Wall Street now forecasts -11.39% negative EPS growth.

Zimmer Biomet Holdings Inc (NYSE:ZBH) Ratings Coverage

Out of 15 analysts covering Zimmer Biomet Holdings (NYSE:ZBH), 12 rate it a “Buy”, 1 “Sell”, while 2 “Hold”. This means 80% are positive. Zimmer Biomet Holdings has been the topic of 22 analyst reports since August 27, 2015 according to StockzIntelligence Inc. The firm has “Buy” rating by Argus Research given on Wednesday, May 25. The stock of Zimmer Biomet Holdings Inc (NYSE:ZBH) has “Buy” rating given on Friday, January 29 by Needham. The stock has “Buy” rating given by Zacks on Friday, August 28. The rating was maintained by RBC Capital Markets with “Outperform” on Monday, November 2. The rating was maintained by Needham on Friday, July 29 with “Buy”. The stock of Zimmer Biomet Holdings Inc (NYSE:ZBH) has “Buy” rating given on Thursday, March 17 by Nomura. The rating was maintained by Barclays Capital on Tuesday, August 23 with “Overweight”. The rating was initiated by SunTrust on Thursday, August 11 with “Buy”. Canaccord Genuity maintained the stock with “Buy” rating in Friday, September 4 report. The firm has “Sell” rating by Citigroup given on Thursday, November 12.

According to Zacks Investment Research, “Zimmer Biomet Holdings, Inc. is a musculoskeletal healthcare company. The company design, manufacture and market orthopaedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, bone healing, craniomaxillofacial and thoracic products; dental implants; and related surgical products. Zimmer Biomet Holdings, Inc., formerly known as Zimmer Holdings, Inc., is based in Warsaw, United States.”

More news for Zimmer Biomet Holdings Inc (NYSE:ZBH) were recently published by: Nasdaq.com, which released: “Zimmer Biomet Holdings, Inc. (ZBH) Ex-Dividend Date Scheduled for September 28 …” on September 25, 2015. Wsj.com‘s article titled: “Zimmer Biomet Cuts Forecasts” and published on October 31, 2016 is yet another important article.

ZBH Company Profile

Zimmer Biomet Holdings, Inc., formerly Zimmer Holdings, Inc., incorporated on January 12, 2001, is engaged in designing, manufacturing and marketing orthopaedic reconstructive products; sports medicine, biologics, extremities and trauma (S.E.T.) products; spine, bone healing, craniomaxillofacial and thoracic products; dental implants, and related surgical products. The Company’s products and solutions helps treat patients suffering from disorders of, or injuries to, bones, joints, or supporting soft tissues. The Firm manages its activities through three geographic operating divisions: the Americas, comprising principally of the United States and includes other North, Central and South American markets; EMEA, comprising of principally of Europe and includes the Middle East and African markets, and Asia Pacific, comprising primarily of Japan and includes other Asian and Pacific markets. The Company’s four product category divisions include Americas Spine, Bone Healing Craniomaxillofacial and Thoracic (CMF) and Dental.

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