12 Undervalued Defensive Stocks for 2025

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

Forward P/E: 13.73

Number of Hedge Fund Holders: 43

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) designs, manufactures, and markets orthopedic reconstructive products. It also offers biologics, extremities, sports medicine, dental implants, trauma products, and related surgical products. Fiscal Q3 2024 marked the 11th consecutive quarter of mid-single-digit or better constant currency revenue growth for Zimmer Biomet Holdings, Inc. (NYSE:ZBH).

The company holds a competitive market position. It is a dominant player in the orthopedic sector, leading the market with a 36% share in knee implants and a 23% share in hip implants. Its regulatory expertise gives it considerable strength, as the development of medical implants requires a lengthy FDA approval process, creating a natural barrier to entry and limiting competition.

Zimmer Biomet Holdings, Inc.’s (NYSE:ZBH) innovative product offerings are also a source of strength for the company. For instance, it is the only orthopedic company that offers a CT scanless robotic system in ROSA, Robotic Surgical Assistant. Additionally, Zimmer Biomet Holdings, Inc. (NYSE:ZBH) has built a specialized distribution network, partnering with over 3,500 healthcare providers worldwide, ensuring its products are a preferred choice in hospitals. Its dominant market share, strong brand recognition, and regulatory expertise make it a key undervalued defensive stock for 2025.