Here's Why it is Worth Investing in Zebra Technologies Right Now

Zebra Technologies Corporation ZBRA stands to benefit from strength across its businesses, focus on operational excellence and acquired assets. The company remains focused on investing in growth opportunities and strengthening its long-term market position.ZBRA, which has a market capitalization of $20.3 billion, currently sports a Zacks Rank #1 (Strong Buy). Let’s delve into the factors that have been aiding the firm for a while now.Business Strength: The company has been witnessing growth across the Enterprise Visibility & Mobility segment. Higher sales of mobile computing and data capture solutions are driving the segment’s revenues, which increased 33.7% year over year in the third quarter of 2024. An increase in sales of services and software, driven by retail software wins, is also aiding the segment.Recovery in demand for printing solutions and RFID products is also boosting the Asset Intelligence & Tracking segment’s performance. In the third quarter, the segment’s sales increased 26.5% on a year-over-year basis. Driven by strength across its businesses, the company expects fourth-quarter 2024 net sales to increase in the band of 28-31% from the prior year.Cost Management Benefits: Zebra remains focused on cost-management actions. The company’s total operating expenses declined approximately 3.9% year over year in the third quarter, due to its cost-saving actions. Also, ZBRA’s gross margin increased 410 basis points to 48.8%, supported by higher volume, leverage and business mix. The company completed its actions under the 2022 productivity plan and employee voluntary retirement plan in the third quarter. These actions have impacted more than 9% of its global employee base, which is likely to generate annualized net cost savings of about $120 million. These efforts are likely to boost margins and produce more fuel to invest in organic growth.Acquisition Benefits: The company intends to strengthen and expand its businesses through acquisitions. ZBRA’s acquisition of Matrox Imaging (June 2022) enabled it to combine its fixed industrial scanning and machine vision portfolio with the latter’s expertise in the imaging market. Also, its antuit.ai buyout (October 2021) complemented the planning and demand forecasting module for its retail software portfolio.Price Performance of ZBRA StockImage Source: Zacks Investment ResearchIn the past year, the company’s shares have surged 45.9% compared with the industry’s 41.7% growth.Shareholder-Friendly Policies: Zebra has continued rewarding its shareholders. The company repurchased shares worth $16 million and $52 million in the first nine months of 2024 and 2023, respectively. In May 2022, its board of directors authorized a share repurchase program for up to $1 billion. Exiting the third quarter of 2024, the company had $877 million remaining under this program.Also, while free cash flow was negative in 2023, the company expects the same to be at least $850 million in 2024. This should support its shareholder-friendly policies.Other Stocks to ConsiderSome other top-ranked companies are discussed below.Graham Corporation GHM currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 earnings has increased 8.4%.Applied Industrial Technologies, Inc. AIT presently carries a Zacks Rank #2 (Buy). AIT delivered a trailing four-quarter average earnings surprise of 5%.In the past 60 days, the consensus estimate for AIT’s 2024 earnings has inched up 0.7%.Generac Holdings GNRC presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 10.8%.In the past 60 days, the consensus estimate for GNRC’s 2024 earnings has increased 5.6%.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>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 Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Graham Corporation (GHM): Free Stock Analysis Report Generac Holdings Inc. (GNRC): Free Stock Analysis Report Zebra Technologies Corporation (ZBRA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks