What Makes Zimmer Biomet Holdings (ZBH) an Investment Opportunity?

In its second quarter 2025 investor letter, Oakmark Equity and Income Fund highlighted stocks such as Zimmer Biomet Holdings, Inc. (NYSE:ZBH). Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is a leading medical technology company. The one-month return of Zimmer Biomet Holdings, Inc. (NYSE:ZBH) was 1.35%, and its shares lost 11.58% of their value over the last 52 weeks. On July 14, 2025, Zimmer Biomet Holdings, Inc. (NYSE:ZBH) stock closed at $93.82 per share with a market capitalization of $18.57 billion.

Oakmark Equity and Income Fund stated the following regarding Zimmer Biomet Holdings, Inc. (NYSE:ZBH) in its second quarter 2025 investor letter:

"Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is a leading medical device company and a pure play in orthopedics. In our view, orthopedics is an attractive product category that should benefit from long-term tailwinds stemming from an aging population, greater activity levels among seniors and increased adoption of specialized robotics that improve surgical efficiency. In addition, market share within the space tends to be sticky, as physicians are typically trained to use leading brands like Zimmer Biomet, reinforcing long-standing brand loyalty. New management recently completed several multi-year initiatives that we think will streamline operations and reinvigorate product innovation. The market has yet to ascribe value to these improvements, providing the opportunity to initiate a position in a dominant, growing company at a discounted valuation to peers and the broader market."

A team of medical specialists discussing orthopaedic reconstructive surgery plans.

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held Zimmer Biomet Holdings, Inc. (NYSE:ZBH) at the end of the first quarter, which was 53 in the previous quarter. Zimmer Biomet Holdings, Inc. (NYSE:ZBH) reported net sales of $1.909 million in Q1, reflecting a 1.1% increase on a reported basis and a 2.3% rise when excluding the effects of foreign currency. While we acknowledge the potential of ZBH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.