Zebra Technologies Faces Market Challenges Despite Strong Earnings
With a market capitalization of $14.8 billion, Zebra Technologies Corporation (ZBRA) operates within the automatic identification and data capture solutions sector globally. Based in Lincolnshire, Illinois, the company functions through two key segments: Asset Intelligence & Tracking and Enterprise Visibility & Mobility.
Companies with a valuation of $10 billion or more are categorized as “large-cap stocks,” and Zebra Technologies clearly meets this standard. The firm has a presence in over 100 countries and offers a diverse portfolio that includes hardware, software, and services.
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The stock has experienced a decline of 32.7% from its 52-week high of $427.76. Over the past three months, ZBRA’s value has dropped by 27.4%, underperforming the broader Nasdaq Composite ($NASX), which has fallen by 10.6% during the same timeframe.
In a longer view, Zebra Technologies has seen a year-to-date (YTD) drop of 25.4%, trailing behind NASX’s loss of 7.3%. Furthermore, ZBRA shares have decreased by 1.2% over the past year, contrasted with a 9.7% gain in the NASX during that period.
Since February, ZBRA has consistently traded below both its 50-day and 200-day moving averages, indicating downward momentum.
Despite exceeding Wall Street expectations with its Q4 2024 results released on February 13, the company’s shares fell by 8.4%. Zebra reported revenue of $1.3 billion and an adjusted earnings per share (EPS) of $4. Adjusted EBITDA increased 90.3% year-over-year, reaching $295 million. For fiscal year 2025, ZBRA forecasts net sales growth between 3% and 7% and an adjusted EPS in the range of $14.75 to $15.25, while free cash flow is anticipated to surpass $750 million.
When compared to its competitor, Belden Inc. (BDC), Zebra Technologies has underperformed. BDC shares have risen by 14.8% over the past year, with a YTD decline of 6.7%.
Despite Zebra’s recent struggles, analysts maintain a moderately optimistic view of the company’s future. Out of 16 analysts covering ZBRA, the consensus rating is “Moderate Buy,” and the stock is currently trading below the average price target of $393.43.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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