What Happened?

Shares of medical device company Zimmer Biomet (NYSE:ZBH) fell 10.2% in the afternoon session after the company reported underwhelming first quarter 2025 results as it lowered its full-year EPS guidance. A key takeaway was the weak growth. Sales were up just 1% as demand for some product lines came in weaker. While hips and trauma gear did well, others, like bone cement and surgical tools, dropped nearly 5%. Overall, this was a softer quarter.

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What The Market Is Telling Us

Zimmer Biomet’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. Moves this big are rare for Zimmer Biomet and indicate this news significantly impacted the market’s perception of the business.

Zimmer Biomet is down 11.9% since the beginning of the year, and at $92.04 per share, it is trading 24.2% below its 52-week high of $121.44 from May 2024. Investors who bought $1,000 worth of Zimmer Biomet’s shares 5 years ago would now be looking at an investment worth $779.78.

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