Is Zimmer Biomet Stock Underperforming the Dow?

Company Overview - Zimmer Biomet Holdings, Inc. (ZBH) has a market capitalization of $19.6 billion and specializes in musculoskeletal healthcare solutions, including orthopedic reconstructive implants and various medical technologies [1] - The company is classified as a "large-cap" stock, which typically includes companies valued over $10 billion [2] Stock Performance - ZBH shares have decreased by 13.6% from their 52-week high of $114.72, while returning 7.6% over the past three months, in line with the Dow Jones Industrials Average [3] - Year-to-date, ZBH stock has declined by 6.2%, underperforming the Dow Jones Industrials Average, which has increased by 7.6% [4] - Over the past 52 weeks, ZBH shares have dropped 7.7%, compared to a 9.9% rise in the Dow Jones Industrials Average [4] - Despite recent declines, ZBH stock has been trading above its 50-day moving average since early August [5] Recent Financial Results - On August 7, ZBH shares rose nearly 8% following the release of better-than-expected Q2 2025 results, reporting adjusted EPS of $2.07 and revenue of $2.08 billion [6] - The company raised its 2025 adjusted EPS forecast to between $8.10 and $8.30, exceeding analyst expectations, and reduced anticipated tariff headwinds to approximately $40 million [6] Competitive Landscape - ZBH has underperformed compared to its rival, Penumbra, Inc. (PEN), which has seen a YTD increase of 10.7% and a 52-week increase of 40.1% [7] - Analysts maintain a moderately optimistic outlook for ZBH, with a consensus rating of "Moderate Buy" from 27 analysts and a mean price target of $110.96, indicating an 11.9% premium to current levels [7]