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Zebra Technologies (ZBRA) Gains 3.2% YTD: Will the Trend Last?

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Zebra Technologies’ (ZBRA - Free Report) shares have gained 3.2% in the year-to-date period. The increase can be linked to growth across data capture solutions, printing and rugged tablets.

Catalysts Behind the Price Surge

Growth in printing owing to continued improvement in product availability is aiding ZBRA’s Asset Intelligence and Tracking segment. The North American sales are being driven by strength in data capture and printing, as well as improved supply chains. Mobile computing growth in Japan is boosting Asia-Pacific sales.

Over time, Zebra Technologies is steadily strengthening its business through acquisitions. In June 2022, the company acquired Matrox Imaging, which enabled ZBRA to combine its fixed industrial scanning and machine vision portfolio with the former’s expertise in the imaging market.

In the first quarter, acquisitions contributed 1.5% to the top line. The company expects a 100-basis point improvement from acquired assets in the first quarter. For the full year, the company expects a 0.5 percentage-point positive impact from acquired assets.


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The company utilizes its cash flow to reward its shareholders through dividend payouts and share repurchase programs. In the first three months of 2023, the company repurchased shares worth $15 million. For 2023, the company expects a free cash flow of approximately $450- $550 million which includes $180 million settlement payments.

Will the Momentum Continue?

Reduction in raw material costs due to decreasing inflation rate is expected to drive ZBRA’s bottom line in the quarters ahead. The company is also expected to benefit from strong customer demand and a healthy pipeline of orders in 2023.

Zacks Rank & Stocks to Consider

ZBRA currently carries a Zacks Rank #4 (Sell). Some better-ranked companies from the Industrial Products sector are discussed below:

Ingersoll Rand Inc. (IR - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.

IR delivered a trailing four-quarter earnings surprise of 12.6%, on average. In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 7.5%. The stock has improved 12.7% in the year-to-date period.

Alamo Group Inc. (ALG - Free Report) currently flaunts a Zacks Rank of 1. ALG delivered a trailing four-quarter earnings surprise of 17.7%, on average.

In the past 60 days, estimates for Alamo’s 2023 earnings have increased 12.7%. The stock has gained 22.1% in the year-to-date period.

Axon Enterprise (AXON - Free Report) currently sports a Zacks Rank of 1. The company has a trailing four-quarter earnings surprise of 44.4%, on average.

In the past 60 days, estimates for Axon’s 2023 earnings have increased 13%. The stock has rallied 17.5% in the year-to-date period.

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