Warren Buffett’s Wisdom: Analyzing Zimmer Biomet’s Recent Stock Activity

Legendary investor Warren Buffett famously says to “be fearful when others are greedy, and be greedy when others are fearful.” One way to measure the level of fear surrounding a stock is through the Relative Strength Index, or RSI. This technical indicator ranks momentum on a scale from zero to 100. Generally, a stock is considered oversold if its RSI falls below 30.

On Friday, shares of Zimmer Biomet Holdings Inc (Symbol: ZBH) fell into oversold territory, reaching an RSI reading of 29.7 after trading as low as $102.98 per share. For comparison, the S&P 500 ETF (SPY) currently has an RSI of 46.6. This low RSI might indicate to bullish investors that the recent selling pressure for ZBH is waning, suggesting potential buying opportunities. The chart below illustrates ZBH’s performance over the past year:

Examining the chart, ZBH’s lowest point over the past 52 weeks was $101.47 per share, while its highest reached $133.90. As of the last trade, the stock price sits at $103.53.

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Additional Resources:

• SHMR Videos
• VECO Average Annual Return
• UFPI Average Annual Return

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.