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Zebra Technologies (ZBRA) Down 50.6% YTD: What's Hurting It?

·2 min read

Zebra Technologies Corporation ZBRA has been grappling with high freight costs and supply-chain constraints for a while. Due to these headwinds, shares of ZBRA have lost 50.6% in the year-to-date period compared with the industry’s decrease of 43.5%.

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Zacks Investment Research

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In the first half of 2022, Zebra Technologies’ operating expenses jumped 56.8% year over year due to higher cost of sales. Its North America sales are being affected by supply-chain constraints. Extended lead times and shortages in components due to supply-chain disruptions are hurting ZBRA’s top line. Also, high freight costs are a concern for ZBRA.

Zebra Technologies’ weak liquidity position is a concern. While exiting the second quarter of 2022, ZBRA’s current debt remained high at $144 million, more than the cash and cash equivalents of $98 million. This implies that ZBRA does not have sufficient cash to meet its current debt obligations.

Due to Zebra Technologies’ presence across diverse regions, it is exposed to various environmental laws and regulations in its operating countries. Adverse forex affected ZBRA’s sales 2% year over year in second-quarter 2022. Foreign currency headwinds also induced the stock’s decline.

Stocks to Consider

Zebra Technologies carries a Zacks Rank #4 (Sell), currently.

Some better-ranked companies from the Industrial Products sector are discussed below:

Applied Industrial Technologies, Inc. AIT presently sports a Zacks Rank #1 (Strong Buy). AIT delivered a trailing four-quarter earnings surprise of 22.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.

AIT’s earnings estimates have increased 6.7% for fiscal 2023 (ending June 2023) in the past 60 days. Its shares have rallied 9.7% in the past six months.

Greif, Inc. GEF presently has a Zacks Rank #2 (Buy). GEF delivered a trailing four-quarter earnings surprise of 22.4%, on average.

GEF’s earnings estimates have increased 4.6% for fiscal 2022 (ending October 2022) in the past 60 days. Its shares have risen 15.7% in the past six months.

Valmont Industries, Inc. VMI presently has a Zacks Rank of 2. VMI’s earnings surprise in the last four quarters was 13.7%, on average.

In the past 60 days, Valmont’s earnings estimates have increased 3.8% for 2022. The stock has rallied 27% in the past six months.

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Valmont Industries, Inc. (VMI) : Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report
Greif, Inc. (GEF) : Free Stock Analysis Report
Zebra Technologies Corporation (ZBRA) : Free Stock Analysis Report
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