For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Zebra Technologies (ZBRA) ten years ago? It may not have been easy to hold on to ZBRA for all that time, but if you did, how much would your investment be worth today?
With that in mind, let's take a look at Zebra Technologies' main business drivers.
Headquartered in Lincolnshire, IL, Zebra Technologies Corporation is the leading provider of enterprise asset intelligence solutions in the automatic identification and data capture solutions industry throughout the world. The company has a diversified portfolio of product and solutions that includes cloud-based subscriptions and a full range of services like maintenance, repair, technical support, as well as managed and professional services. The products and solutions, which are sold across 180 countries, are designed to help its customers achieve enhanced operational efficiency, increased asset utilization, optimized workflows and improved regulatory compliance. As of 2023-end, it had around 9,750 employees globally.
Key end markets served by the company include manufacturing, retail and e-commerce, transportation and logistics, public sector, healthcare, and other industries throughout the world. Products are sold directly through sales representatives and an extensive network of channel partners.
Zebra Technologies reports operations under two segments — Asset Intelligence & Tracking (“AIT”) and Enterprise Visibility & Mobility (“EVM”). The segments are briefly discussed below:
AIT (34.4% of total revenues in 2023): This segment specializes in barcode printing and asset tracking technologies. Its key product lines comprise barcode and card printers, services, supplies, and location solutions. These products are sold primarily in North America, Europe, Middle East and Africa (“EMEA”), Latin America and the Asia-Pacific.
EVM (65.6%): This segment specializes in designing and manufacturing rugged and enterprise-grade mobile computing products and accessories. Its mobile computing products mostly include the Android operating system and support local-area and wide-area voice and data communications. Its key product lines also comprise data capture technologies, voice and video collaboration tools, RFID (radio frequency identification) as well as software-based workflow optimization solutions. These products are sold primarily in North America, EMEA, Latin America and the Asia-Pacific.
It’s worth noting that in the first quarter of 2021, the company shifted its retail solutions offering from the Asset Intelligence & Tracking segment into the Enterprise Visibility & Mobility segment.
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Zebra Technologies a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in November 2014 would be worth $5,333.24, or a gain of 433.32%, as of November 7, 2024, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 191.90% and the price of gold went up 117.49% over the same time frame.
Looking ahead, analysts are expecting more upside for ZBRA.
Zebra Technologies is focusing on advancing digital capabilities, optimizing the supply-chain and expanding data analytics capabilities to engage with its customers. Higher sales of mobile computing and data capture solutions are supporting the Enterprise Visibility & Mobility segment’s sales. Higher sales for printing solution and RFID products are also boosting the Asset Intelligence & Tracking segment. Zebra Technologies’ cost-management actions are enabling it to cut down operating costs and improve margin performance. The company’s efforts to reward shareholders despite the uncertain macroeconomic environment can support prices. Amid these positives, shares of the company have outperformed its industry in the past six months. However, high debt levels may also raise financial obligations and hurt profitability.
The stock is up 5.49% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2024. The consensus estimate has moved up as well.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Zebra Technologies Corporation (ZBRA) : Free Stock Analysis Report
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