Zebra Technologies: Strong Earnings and Stock Performance Illuminate Growth Potential
Zebra Technologies Corporation (ZBRA), headquartered in Lincolnshire, Illinois, leads the field in enterprise asset intelligence solutions with a market cap of $20.4 billion. The company offers a wide range of products and services including barcode scanners, mobile computing devices, and RFID technologies. These offerings empower businesses across various industries to enhance their operations and gain valuable insights into their assets and data.
Large-Cap Status and Workforce
Classified as a “large-cap” stock, Zebra Technologies is valued at over $10 billion, positioning it among major players in the stock market. The company employs approximately 10,000 individuals, serving a global market with advanced asset intelligence solutions that significantly improve efficiency in sectors such as retail, healthcare, and logistics.
Stock Performance Highlights
Currently, ZBRA shares are trading 4% below their recent 52-week peak of $413.43 reached on December 9. The stock has increased by 6.9% in the last three months, outpacing the S&P 500 Index ($SPX), which returned 5.1% during the same period.
In the past six months, ZBRA has shown impressive growth, with its stock surging 29.2%. This is a stark contrast to the SPX, which only gained 10.2%. Over the last year, ZBRA shares have soared 44.1%, solidifying a significant advantage over the S&P’s 26.5% growth.
Technical Analysis Points to Bullish Trends
The stock’s bullish trend is reinforced by its trading above the 200-day moving average since mid-February and remaining well above the 50-day moving average since early September.
Robust Q3 Earnings Report
On October 29, Zebra Technologies reported a strong Q3 earnings result, with shares rising 5.8%. Adjusted earnings per share increased by an astonishing 301.1% to $3.49, surpassing analysts’ expectations of $3.24. Revenue grew by 31.3% year-over-year, reaching $1.25 billion, above the $1.21 billion consensus estimate.
The company also reported a 3.9% reduction in operating expenses, totaling $422 million. This decline reflects the effectiveness of its restructuring efforts and strong performance across its business segments.
Comparative Performance Against Competitors
ZBRA has significantly outperformed its competitor, Lam Research Corporation (LRCX), which has seen its stock decline by 7% over the past year, illustrating the challenges it faces in the current market environment.
Analysts Show Moderate Optimism
With ZBRA’s strong performance, analysts maintain a “Moderate Buy” consensus among the 15 covering analysts. The average price target is set at $414, suggesting a potential upside of 4.3% from current market prices.
On the date of publication, Kritika Sarmah 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
