5 Stocks to Buy According to Stephen DuBois’ Camber Capital Management

4. Zimmer Biomet Holdings, Inc. (NYSE:ZBH)

Camber Capital Management’s Stake Value: $172,665,000
Percentage of Camber Capital Management’s Portfolio: 6.24%
Number of Hedge Fund Holders: 33

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) develops, produces, and sells orthopedic reconstructive implants and surgical equipment. Elite hedge funds were less interested in Zimmer Biomet Holdings, Inc. (NYSE:ZBH) at the end of the first quarter than they were a quarter earlier; 33 hedge funds disclosed having long positions in the business as of March 31, down from 43 funds a quarter earlier.

Camber Capital Management has held a stake since Q1 2021. In addition, the hedge fund turned bullish in the first quarter of 2022, as it upped the size of its Zimmer Biomet Holdings, Inc. (NYSE:ZBH) holding by 35%, or 320,000 shares. With nearly 1.35 million shares worth $172.67 million as of March 31, Zimmer Biomet Holdings, Inc. (NYSE:ZBH) stands in fourth position in the portfolio of DuBois’ Camber Capital Management.

Analyst Joanne Wuensch of Citi maintained a ‘Neutral’ rating on Zimmer Biomet Holdings, Inc. (NYSE:ZBH)’s shares on May 17 and lowered her price target on them from $135 to $125. Wuensch warned investors in a research report that higher inflation, slower growth, and rising interest rates have caused market multiples to contract.

Ariel Investments, an investment management firm, mentioned Zimmer Biomet Holdings, Inc. (NYSE:ZBH) in its Q4 2021 investor letter. Here is what the fund said:

“A reopening of the global economy with a reduction in the severity of the pandemic has led us to invest in companies that would perform well with an end to Covid restrictions such as canceled sports and entertainment events or companies that would benefit from pent-up demand for consumer products. Healthcare holdings such as Zimmer Biomet Holdings Inc. (ZBH) saw demand for their “elective” healthcare services decline sharply as hospitals lost capacity for non-essential surgeries or orthotics. We believed those companies should see a rebound in their business as cases decline. Unfortunately, two new Covid variants turned this theme from a tailwind to a headwind in the second half of the year. First, Delta then Omicron sent Covid cases higher and both companies saw their businesses slow again. Zimmer’s stock lost -13.04% in the fourth quarter. As we write, we believe Omicron cases could be nearing a peak which would allow our thesis to better play out this year.”