5-Star Stocks Poised to Pop: Zimmer

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Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, orthopedic implant maker Zimmer Holdings (NYSE: ZMH) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Zimmer's business, and see what CAPS investors are saying about the stock right now.

Zimmer facts

Headquarters (founded)	Warsaw, Indiana (1927)
Market Cap	$8.85 billion
Industry	Health care Equipment
TTM Revenue	$4.16 billion
Management	CEO David Dvorak (since 2007) CFO James Crines (since 2007)
Return on Equity (average last three years)	16.5%
Competitors	Stryker (NYSE: SYK), Smith & Nephew (NYSE: SNN)
CAPS members bullish on ZMH also bullish on	Johnson & Johnson (NYSE: JNJ), Cisco Systems (Nasdaq: CSCO)
CAPS members bearish on ZMH also bearish on	Biogen Idec (Nasdaq: BIIB), Evergreen Solar (Nasdaq: ESLR)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 521 of the 543 members who have rated Zimmer -- some 96% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include beregra and CAPS All-Star kayakingkarl.

Last month, beregra touched on the demographic supertrend working in Zimmer's favor: "With aging population, this orthopedic replacement company is positioned in the right spot. Good growth."

In a more recent pitch from last week, kayakingkarl agrees, breaking down a possible (and attractive) risk/reward scenario for our community:

"Outstanding balance sheet. Seriously oversold. This is one of the babies that was thrown out with the bathwater. 20% Downside possible in near future with 180% upside within the next 3 years. I am buying this one. The time is right."

What do you think about Zimmer, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.