Zebra Technologies Corporation ZBRA recently closed the acquisition of Photoneo, a market leader in the 3D machine vision solutions industry.

Based in Slovakia, Photoneo is a well-known developer of robotic vision and intelligence solutions. The company is well-known for manufacturing advanced 3D cameras with the world’s highest resolution and accuracy features. Photoneo’s intelligent robots enable companies from the food, automotive, logistics and e-commerce industries to boost the efficiency of their manufacturing, fulfillment and assembly processes.

Acquisition Rationale

The latest buyout is in sync with Zebra Technologies’ policy of acquiring businesses to strengthen its business and product portfolio. With the buyout, the company will be able to combine its advanced sensors, vendor-agnostic software and AI-based image processing capabilities with Photoneo’s 3D machine vision solutions.

This will enable ZBRA to enhance its portfolio of 3D machine vision solutions and address customers’ several challenges in high-value applications. This includes bin picking, depalletizing and inspecting objects utilized in logistics, automotive manufacturing and other industries.

ZBRA’s Zacks Rank, Price Performance and Earnings Trend

ZBRA, with a $15.7 billion market capitalization, currently carries a Zacks Rank #5 (Strong Sell). It has been dealing with the adverse impacts of the high costs and expenses. In the fourth quarter of 2024, the company’s cost of sales increased 22.3% year over year due to high raw material costs. 

High debt levels, if not controlled, may raise Zebra Technologies’ financial obligations and hurt profitability. Exiting 2024, the company’s long-term debt totaled $2.09 billion. Considering Zebra Technologies’ high debt level, its cash and cash equivalents of $901 million do not look impressive. 

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Its shares have lost 20.9% compared with the Manufacturing - Thermal Products industry’s 18.8% decline in the past month.

The Zacks Consensus Estimate for 2025 earnings has decreased 4.1% to $15.30 per share in the past 30 days.

Stocks to Consider

Some better-ranked companies are discussed below:

RBC Bearings Incorporated RBC presently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

It has a trailing four-quarter earnings surprise of 5%, on average. The consensus estimate for RBC’s fiscal 2025 (ending March 2025) earnings has increased 1.2% in the past 30 days.

Applied Industrial Technologies, Inc. AIT presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 5.3%. The Zacks Consensus Estimate for AIT’s fiscal 2025 (ending June 2025) earnings has improved 0.3% in the past 30 days.

The Middleby Corporation MIDD presently carries a Zacks Rank of 2. MIDD delivered a trailing four-quarter earnings surprise of 1.9%, on average. The Zacks Consensus Estimate for Middleby’s 2025 earnings has increased 0.6% in the past 30 days.

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Zebra Technologies Corporation (ZBRA) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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