Do You Believe in the Upside Potential of Zimmer Biomet Holdings (ZBH)?

Ariel Investments, an investment management company, released its “Ariel Global Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter marked a period of extremes. The stocks fell after the “Liberation Day” tariff announcement in early April and rebounded following the pause in tariff implementation. Enthusiasm for artificial intelligence (AI) themed stocks and robust corporate earnings results lifted global and U.S. indices to new highs. Against this backdrop, the Ariel Global fund traded +7.38% higher in the quarter, compared to the +11.53% return of the MSCI ACWI Index and +5.84% return of the MSCI ACWI Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Ariel Global 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 6.23%, and its shares lost 6.74% of their value over the last 52 weeks. On September 16, 2025, Zimmer Biomet Holdings, Inc. (NYSE:ZBH) stock closed at $99.12 per share, with a market capitalization of $19.635 billion.

Ariel Global Fund stated the following regarding Zimmer Biomet Holdings, Inc. (NYSE:ZBH) in its second quarter 2025 investor letter:

“Finally, we added Zimmer Biomet Holdings, Inc. (NYSE:ZBH), maker of hips and knees. The company has struggled to maintain market share following its 2015 acquisition of Biomet, but we expect new product launches to deliver mid single digit top-line growth over the next three-to-five years. In success ZBH should experience incremental revenue and earnings growth as well as margin expansion.”

Zimmer Biomet Holdings, Inc. (ZBH): Among Small-Cap Healthcare Stocks Hedge Funds is Buying

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Zimmer Biomet Holdings, Inc. (NYSE:ZBH) at the end of the second quarter, which was 52 in the previous quarter. In the second quarter, Zimmer Biomet Holdings, Inc. (NYSE:ZBH) reported net sales of $2.077 billion, an increase of 7% on a reported basis. While we acknowledge the risk and potential of Zimmer Biomet Holdings, Inc. (NYSE:ZBH) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Zimmer Biomet Holdings, Inc. (NYSE:ZBH) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Zimmer Biomet Holdings, Inc. (NYSE:ZBH) and shared Carillon Scout Mid Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.