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Based in Lincolnshire, Illinois, Zebra Technologies Corporation (ZBRA) provides Enterprise Asset Intelligence (EAI) solutions in the Automatic Identification and Data Capture (AIDC). With a market cap of $18.1 billion, the company operates in two segments: Asset Intelligence & Tracking and Enterprise Visibility & Mobility. It provides mobile computing, barcode printing, and other workflow automation products and services.
Shares of this barcode scanner maker have outperformed the broader market over the past 52 weeks. ZBRA has soared nearly 31% over this time frame, while the broader S&P 500 Index ($SPX) has gained 28.1%. In 2024, shares of ZBRA are up 28.6%, compared to SPX’s 18.3% gain on a YTD basis.
Narrowing the focus, ZBRA has outpaced Proshares Big Data Refiners ETF’s (DAT) 31.6% gain over the past 52 weeks and 8.3% return on a YTD basis.
ZBRA’s outperformance is driven by increased sales of radio frequency identification device (RFID) products fueled by robust demand in retail and retail apparel markets, increased parcel tracking in transportation logistics markets and airports, coupled with the company’s efficient cost management initiatives and strategic acquisitions.
Moreover, shares of ZBRA surged 3.9% on Jul. 30 following its better-than-expected Q2 earnings release driven by a steady recovery in demand across sectors like retail and healthcare. Additionally, the company raised its full-year sales growth forecast and projected a robust increase in Q3 net sales.
For the current fiscal year, ending in December, analysts expect ZBRA’s EPS to grow 25.9% year over year to $11.09. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on one another occasion.
Among the 15 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” five “Holds,” and one “Strong Sell.”
The configuration is more bullish than three months ago, with six analysts suggesting a “Strong Buy.”
On Jul. 31, Baird analyst Richard Eastman maintained an “Outperform” rating on Zebra Technologies and raised the price target to $375, noting the company’s improved demand across verticals in Q2 and raised 2024 earnings guidance.
The mean price target of $367.46 represents a premium of just 4.5% to ZBRA’s current levels. The Street-high price target of $410, implies a potential upside of 16.6% from the current price.
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.
