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Zebra Technologies Corporation ZBRA stock has soared 75% during the last year as the automation technology company rebounds following its Covid-driven boom and bust cycle.
ZBRA posted a beat-and-raise quarter in late October, citing “continued momentum in demand” from its clients ranging across manufacturing, energy, logistics, and beyond. Zebra Technologies’ growth outlook is strong, boosted by a resilient U.S. economy, highlighted by booming data center expansion, infrastructure spending, and reshoring.
ZBRA stock has doubled the S&P 500 during the past 10 years and crushed its Industrial Products sector. Yet, Zebra Technologies stock trades 30% below its records even as the market is at all-time highs and appears a bit frothy in the near term.
Why ZBRA is an Under-the-Radar Stock to Play Key Megatrends
Zebra Technologies helps boost the productivity of frontline workers in the modern, digital-everything world. ZBRA makes handheld computers, wearables, tablets, scanners, vehicle-mounted tech, interactive kiosks, and much more alongside multiple software solutions.
Zebra Technologies products are essential in the tech-driven economy, with its various equipment and software utilized across healthcare, manufacturing, energy and utilities, warehouse and distribution, retail, and beyond.
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Zebra Technologies plays a critical role since its various customers must utilize the most advanced tech to operate these days where nearly every pocket of the economy is supported by digital tech, from sorting warehouses to working on telecom equipment and mining operations.
Zebra Technologies grew its third quarter revenue by 31%, with double-digit sales growth across all vertical markets. Digging deeper, U.S. sales climbed 47%, with North American sales up 22%, led by mobile computing and printing.
Its other regions performed well, highlighted by strength in Southeast Asia and India. Zebra Technologies also critically experienced stabilization in China.
Zebra Technologies boosted its gross margin by over 4% last quarter to 48.8% and completed its restructuring actions. Some of its streamlining efforts included consolidating its North American distribution centers into a single Chicago area facility.
Zebra Technologies boosted its adjusted earnings by 301% in Q3 against what looks to be the bottom of its business cycle.
ZBRA’s Growth Outlook
The digital solution provider offered upbeat guidance. “We have increased our full year outlook for profitable growth to reflect our recent performance and continued momentum in demand,” ZBRA CEO Bill Burns said in prepared Q3 remarks in late October.