112.95 +0.95 (+0.84%) Sell

Looking to invest in ZBH? Consider it, because it managed to outperform the broader market

13 min read

ZIMMER BIOMET HOLDINGS, INC. managed to outperform the broader market on Wednesday. It surged by +0.84% to close at 112.95. On a day when the overall market breadth was 35%, it closed higher than 11% of the market. In comparison, the benchmark SP500 index closed today at +0.54%.

[Themes containing ZBH]

ZBH showed a strong bearish trend over the last 3 months. During this period ZBH fell by -12.89% and saw a maximum drawdown of -16.39%. There was a short signal during this period which returned +11.32%.


ZBH has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 10 Oct, 2016 to 18 Jul, 2018. Over the last 2 years 11 months and 8 days, ZBH underperformed the SP500 index on 45% days. Which indicates that on days ZBH underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

ZBH returned losses on 58% days in the last three months. During this time, it delivered on average -0.21% per day. It delivered it's worst daily return of -5.75%, during this period, on Friday, 26 Oct, 2018. The longest stort-term trend during this period was 9 losing days, which started on 1 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -8.1% of investor capital.

During the last year ZBH had 5 profitable months and 7 loss making months. ZBH returned profits in fewer months than SP500 index. ZBH was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -13.0% compared to -7.28% returned by SP500 index in Oct 2018. ZBH and SP500 index, both had periods of 2 consecutive losing months. It is interesting to note that both ZBH and SP500 index significantly outperform during months when quarterly/annual results are announced.

"You have venture capitalists. We view them as experts who also help finance your company and give directions and also some pretty candid discussions about what you have to do better.

ZBH is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in ZBH's volatility from 27 Sep, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that ZBH has significant positive skewness in it's return distribution. This indicates that investors can expect ZBH to recover from drawdowns quickly. Which makes ZBH a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than ZBH. Therefore, SP500 must receive a lower allocation than ZBH in your portfolio. SP500 index usually has shorter drawdown period than ZBH.

Based on your interest in ZBH you may find it interesting to know that APRN and NSPR have both shown remarkable performance and deserve to be on every investors' watchlist.

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