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Let's talk about the popular Zebra Technologies Corporation (NASDAQ:ZBRA). The company's shares saw a significant share price rise of 33% in the past couple of months on the NASDAQGS. While good news for shareholders, the company has traded much higher in the past year. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Zebra Technologies’s outlook and value based on the most recent financial data to see if the opportunity still exists.
What's The Opportunity In Zebra Technologies?
Great news for investors – Zebra Technologies is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $396.30, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Zebra Technologies’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Check out our latest analysis for Zebra Technologies
What does the future of Zebra Technologies look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 44% over the next couple of years, the future seems bright for Zebra Technologies. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? Since ZBRA is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on ZBRA for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ZBRA. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.