Zebra Technologies Stock Hits Key Support – Buying Opportunity?
Zebra Technologies (ZBRA) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($260.59 – $288.03), levels from which it has bounced meaningfully before. In the last 10 years, Zebra Technologies stock received buying interest at this level 6 times and subsequently went on to generate 31.2% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 11/3/2020 | 92.5% | 402 |
| 6/14/2022 | 19.2% | 48 |
| 1/11/2023 | 15.0% | 22 |
| 4/26/2024 | 10.0% | 28 |
| 6/18/2024 | 19.1% | 66 |
| 9/6/2024 | 31.3% | 139 |
But is the price action enough alone? It certainly helps if the fundamentals check out. For ZBRA Read Buy or Sell ZBRA Stock to see how convincing this buy opportunity might be.
The question isn’t where ZBRA stock goes, but how your portfolio is positioned. See how Trefis High Quality Portfolio and Empirical Asset Management prepare you.
Here are some quick data points for Zebra Technologies that should help decision:
- Revenue Growth: 12.9% LTM and -2.4% last 3 year average.
- Cash Generation: Nearly 15.1% free cash flow margin and 15.3% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for ZBRA was -20.8%.
- Valuation: ZBRA stock trades at a PE multiple of 27.2
- Opportunity vs S&P: Compared to S&P, you get higher valuation, higher LTM revenue growth, and lower margins
For quick background, Zebra Technologies provides enterprise asset intelligence solutions, including printers for labels and cards, along with maintenance, support, repair, and professional services in asset tracking and enterprise mobility.
| ZBRA | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Electronic Equipment & Instruments | – |
| PE Ratio | 27.2 | 23.7 |
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| LTM* Revenue Growth | 12.9% | 5.2% |
| 3Y Average Annual Revenue Growth | -2.4% | 5.3% |
| Min Annual Revenue Growth Last 3Y | -20.8% | -0.1% |
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| LTM* Operating Margin | 15.3% | 18.8% |
| 3Y Average Operating Margin | 14.6% | 17.9% |
| LTM* Free Cash Flow Margin | 15.1% | 13.1% |
*LTM: Last Twelve Months
What Is Stock-Specific Risk If The Market Crashes?
Zebra Technologies isn’t immune to deep sell-offs. It fell about 51% in the Dot-Com crash and took a 61% hit in the Global Financial Crisis. The 2018 correction trimmed nearly 29%, while the Covid dip wiped out around 38%. The worst blow came during the recent inflation shock, with a sharp 68% drop. Good fundamentals matter, but when the market turns sour, even solid stocks like Zebra can see major declines.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read ZBRA Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.