Zimmer Holdings, Inc. (NYSE:ZMH)

CAPS Rating: 4 out of 5

The Company designs, develops, manufactures and markets reconstructive orthopaedic implants, including joint and dental, spinal implants, trauma products and related orthopaedic surgical products.

Recs

4
Player Avatar snapperreef (64.34) Submitted: 9/4/2006 8:12:09 PM : Outperform Start Price: $67.81 ZMH Score: -15.59

Large numbers of active older persons who will be more likely to need hip/knee prostheses or replacements. Baby boomers will be biggest source of customers. As a Zimmer knee implantee, I can personally vouch for the quality of the product.
With wide moat numbers such as Op margin of 33.9%, no ttm debt, nearly 30% of orthopedic joint market share, and stair step growth in earnings and FCF. I think it will handily outgrow the S&P over the next several years and may even get stronger as the active boomers get older.

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