Shares of Zebra Technologies (NASDAQ: ZBRA) gained 22.2% in June, according to data from S&P Global Market Intelligence. The maker of data collection and processing tools, such as bar code scanners and radio-frequency identification tag readers, bounced back from a 19% drop in May, driven by generally improving conditions in Zebra's most important target markets.
May's weakness was based on a combination of tense geopolitical trade relations and profit-taking after massive gains in recent months. Zebra recovered from that trough in June as investors got back to the usual business of simply driving share prices higher over time.
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The company has seen operating profits rise by an average of 39% over the last three years, lifting Zebra's share price 335%. Even now, the stock trades at a relatively reasonable valuation of 16 times forward earnings or 18 times trailing free cash flows, leaving plenty of room for further gains.
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