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Zebra Technologies Corporation (ZBRA), based in Lincolnshire, Illinois, is a global leader in enterprise asset intelligence solutions with a market cap of $20.4 billion. The company provides a broad array of products and services, including barcode scanners, mobile computing devices, and RFID technologies, enabling businesses across industries to optimize operations and gain actionable insights into assets and data.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Zebra Technologies fits right into that category. With a workforce of around 10,000, the company serves a global market, delivering advanced enterprise asset intelligence solutions. Its innovative offerings help businesses in sectors like retail, healthcare, and logistics enhance operational efficiency and boost productivity.
Shares of ZBRA are trading 4% below their 52-week high of $413.43, which they hit recently on Dec. 9. The stock has gained 6.9% over the past three months, outperforming the S&P 500 Index’s ($SPX) 5.1% returns over the same time frame.
Over the past six months, ZBRA has demonstrated remarkable performance, with its stock surging 29.2%, significantly outpacing the SPX, which has delivered a modest return of 10.2% over the same period. On a broader time frame, ZBRA shares have climbed an impressive 44.1% over the past 52 weeks, further solidifying its outperformance compared to the SPX's 26.5% gain.
To confirm its bullish trend, ZBRA has been trading above its 200-day moving average since mid-February and has been majorly over its 50-day moving average since early September.
On Oct. 29, Zebra Technologies shares rose 5.8% following a robust Q3 earnings report. Adjusted earnings soared 301.1% to $3.49 per share, surpassing Wall Street estimates of $3.24. Revenue increased 31.3% year-over-year to $1.25 billion, beating the $1.21 billion consensus.
Additionally, operating expenses declined 3.9% to $422 million, reflecting the success of its restructuring initiatives and strong performance across all business segments.
ZBRA has substantially outperformed its rival, Lam Research Corporation (LRCX). over the past year. LRCX has fallen 7%, highlighting its challenges in navigating market conditions.
Given ZBRA’s outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 15 analysts in coverage. The mean price target of $414 indicates a potential upside of 4.3% from the prevailing market prices.
