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Zebra Technologies (ZBRA) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Zebra Technologies (ZBRA) closed the most recent trading day at $232.68, moving +0.2% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.42%, and the tech-heavy Nasdaq gained 0.03%.

Heading into today, shares of the producer of printers for bar codes, plastic cards and, radio-frequency identification tags had gained 8.22% over the past month, outpacing the Industrial Products sector's gain of 5.72% and the S&P 500's gain of 2.89% in that time.

Investors will be hoping for strength from ZBRA as it approaches its next earnings release, which is expected to be April 30, 2019. In that report, analysts expect ZBRA to post earnings of $2.87 per share. This would mark year-over-year growth of 12.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.05 billion, up 7.71% from the year-ago period.

ZBRA's full-year Zacks Consensus Estimates are calling for earnings of $12.48 per share and revenue of $4.47 billion. These results would represent year-over-year changes of +13.35% and +6.07%, respectively.

It is also important to note the recent changes to analyst estimates for ZBRA. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZBRA currently has a Zacks Rank of #3 (Hold).

Investors should also note ZBRA's current valuation metrics, including its Forward P/E ratio of 18.6. For comparison, its industry has an average Forward P/E of 17.53, which means ZBRA is trading at a premium to the group.

The Manufacturing - Thermal Products industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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