Is Zimmer Biomet Stock Worth Retaining in Your Portfolio Now?

The leading musculoskeletal healthcare company has a market capitalization of $17.18 billion. The company’s earnings yield of 8.6% is well ahead of the industry’s 2.6% yield. Zimmer Biomet’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 4.53%. 

Let’s delve deeper.

Tailwinds for ZBH Stock

Innovation and Diversification: Zimmer Biomet continues to broaden its portfolio through internal launches, robotics and acquired platforms. In the second quarter of 2026, Hips grew 5.1% at constant currency, including 5.9% in the United States, as Z1, HAMMR and OrthoGrid adoption increased. Z1 represented more than 40% of U.S. hip stems, while HAMMR was used in more than 25% of U.S. primary hip cases. The iodine-coated hip launch in Japan was exceeding management expectations and was generating competitive conversions. 

S.E.T. grew 3.4% organically, while Paragon 28 sales increased in the mid-teens and commercial integration was largely complete. Technology & Data, Bone Cement and Surgical grew 21.5%, with record capital sales and initial ROSA Shoulder contribution. Management also expects to file the Monogram 510(k) in the near term and plans more than 50 new products over the next 36 months. 

Procedure Demand Remains Supportive: Zimmer Biomet continues to see healthy orthopedic procedure demand, which provides a steadier base for its product cycle despite uneven performance by geography. Second-quarter 2026 organic constant currency sales increased 4%, including 4.6% in the United States and 3.1% internationally. Hips grew 5.1% at constant currency, while S.E.T. organic growth improved to 3.4% from 1.6% in the first quarter. Management raised 2026 organic constant currency revenue growth guidance to 2.25-3.25%, citing healthy procedural markets and new product momentum while still accounting for go-to-market disruption and pricing erosion.

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What Ails ZBH Stock?

Competitive Landscape: Orthopedics remains highly competitive across pricing, implants, robotics and surgeon relationships. Zimmer Biomet's second-quarter 2026 Knee growth was only 0.1% organically, including a 1.5% international decline, underscoring the need for continued product launches and commercial execution.

Leveraged Capital Structure: Zimmer Biomet ended the second quarter of 2026 with $410 million of cash and cash equivalents, down from $591.9 million at year-end 2025. Total debt remained about $7.48 billion, while the current portion of long-term debt increased to $1.20 billion from $587.1 million at year-end. Operating cash flow was $807.2 million in the first half, but the company spent $500.8 million on share repurchases and $93.4 million on dividends. The larger capital return program reduces balance sheet flexibility while the company funds commercial transformation and integration. With debt elevated and more maturities classified as current, capital allocation remains a constraint.

ZBH Stock Estimate Trend

The Zacks Consensus Estimate for Zimmer Biomet’s 2026 earnings per share (EPS) has moved north by 0.6% to $8.53 in the past 30 days.

The consensus estimate for the company’s 2026 revenues is pegged at $8.58 billion, indicating a 4.3% rise from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are Globus Medical GMED, Veracyte VCYT and Teleflex TFX.

Globus Medical has an earnings yield of 5.8% in contrast to the industry’s negative 1.7% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.9%. GMED’s shares have rallied 42.3% against the industry’s 6.3% fall over the past year.

GMED sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Veracyte, sporting a Zacks Rank #1, has an earnings yield of 4.6% compared to the industry’s negative 1.7% yield. Shares of the company have risen 38% against the industry’s 6.3% decline. VCYT’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 41.8%. 

Teleflex, carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 20.7% compared with the industry’s 12.8% rise. Its earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.2%. TFX’s shares have rallied 5% against the industry’s 6.2% decline over the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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