Zimmer Biomet Holdings (ZBH) Fell due to Reduced Guidance

Scout Investments, Inc., an affiliate of Carillon Tower Advisers, released the “Carillon Scout Mid Cap Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The Russell Midcap Index posted positive returns in the second quarter despite a sharp sell-off at the beginning of April following the liberation Day tariff announcement. However, the delay in collecting additional tariffs provided more time for trading partners to negotiate better terms. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Carillon Scout Mid Cap 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 1.99%, and its shares lost 1.25% of their value over the last 52 weeks. On September 09, 2025, Zimmer Biomet Holdings, Inc. (NYSE:ZBH) stock closed at $103.85 per share, with a market capitalization of $20.572 billion.

Carillon Scout Mid Cap Fund stated the following regarding Zimmer Biomet Holdings, Inc. (NYSE:ZBH) in its second quarter 2025 investor letter:

Zimmer Biomet Holdings, Inc. (NYSE:ZBH), which manufactures and sells medical implants for joint replacements, lagged. Despite an overall solid earnings report, Zimmer lowered guidance due to dilution from a recent acquisition and the estimated impact from announced but not yet implemented tariffs. The company also lost some market share in its knee replacement product. We view the lowered guidance as a one-time reset that should likely reverse given the recent news around tariffs, and we think that an upcoming new release cycle should help accelerate Zimmer’s revenue growth.”

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 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 some of the undervalued wide moat stocks to buy. 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.