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The Zebra Technologies (NASDAQ:ZBRA) Share Price Has Gained 201%, So Why Not Pay It Some Attention?

Simply Wall St

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on a lighter note, a good company can see its share price rise well over 100%. One great example is Zebra Technologies Corporation (NASDAQ:ZBRA) which saw its share price drive 201% higher over five years. Also pleasing for shareholders was the 20% gain in the last three months. But this could be related to the strong market, which is up 11% in the last three months.

See our latest analysis for Zebra Technologies

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the five years of share price growth, Zebra Technologies moved from a loss to profitability. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

NasdaqGS:ZBRA Past and Future Earnings, January 23rd 2020

We know that Zebra Technologies has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Zebra Technologies's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

We're pleased to report that Zebra Technologies shareholders have received a total shareholder return of 47% over one year. That's better than the annualised return of 25% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Zebra Technologies better, we need to consider many other factors. Take risks, for example - Zebra Technologies has 1 warning sign we think you should be aware of.

Of course Zebra Technologies may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.