Zimmer Biomet Holdings Inc ZBH

Zimmer Biomet Faces Management and Operational Changes, but Wide Moat Remains Constant

Zimmer Biomet is the market leader in large-joint reconstruction, and we expect aging baby boomers and improving technology suitable for younger patients to fuel solid demand for hip and knee replacement that should offset price declines. Zimmer stumbled into a series of pitfalls in 2016-17, including integration issues, supply and inventory challenges, and quality concerns. The firm's efforts to turn itself around have been admirable, though the pandemic slowed progress. Despite all the improvement, the firm still hasn't reached consistent growth and profitability gains.