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Here's Why Investing in Zebra Technologies Stock Makes Sense

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Key Takeaways

  • ZBRA's Q2 revenues rose on higher mobile computing, RFID and printing solution sales.
  • Acquisitions of Elo and Photoneo expand markets and boost 3D machine vision capabilities.
  • The company repurchased $250M shares in H1 2025, with $597M still authorized.

Zebra Technologies Corporation (ZBRA - Free Report) is poised to gain from strength across its segments, acquired assets and shareholder-friendly moves.

ZBRA currently carries a Zacks Rank #2 (Buy). In the past year, the stock has lost 5.4% compared with the industry’s 6.1% decline.

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Let’s delve into the factors that make this company a smart investment choice at the moment.

Business Strength: ZBRA is witnessing growth across the Enterprise Visibility & Mobility and Asset Intelligence & Tracking segments. Higher sales of mobile computing and data capture solutions are driving the Enterprise Visibility & Mobility segment’s revenues, which increased 6.7% year over year in the second quarter of 2025. An increase in sales of services and software, driven by retail software wins, also bodes well. Increase in demand for printing solutions and RFID products is supporting the Asset Intelligence & Tracking segment’s performance. In the second quarter, the segment’s sales increased 5.3% on a year-over-year basis.

Expansion Efforts: Over time, Zebra Technologies has steadily strengthened its business through acquisitions. In August 2025, the company inked a deal to acquire Elo Touch Solutions, Inc. (Elo). The inclusion of Elo’s expertise in consumer-facing workflow, augmented by its suite of kiosks, edge computing, payment and touchscreen solutions, will expand its addressable market by about $8 billion. The deal is expected to close in 2025, subject to standard closing conditions. In March 2025, Zebra Technologies acquired Photoneo, which enables it to combine Photoneo’s 3D machine vision solutions with its advanced sensors, vendor-agnostic software and AI-based image processing capabilities. This acquisition enhances ZBRA’s portfolio of 3D machine vision solutions and addresses several challenges in high-value applications. In the second quarter, acquisitions contributed 0.2% to the total revenues.

Rewards to Shareholders: ZBRA’s measures to continue rewarding its shareholders despite the slowdown in markets hold promise. The company repurchased shares worth $250 million and $47 million in the first six months of 2025 and 2024, respectively. In May 2022, its board of directors authorized a share repurchase program for up to $1 billion. At the end of the second quarter of 2025, the company had $597 million remaining under this program.

Other Stocks to Consider

Some other top-ranked companies are discussed below.

Flowserve Corporation (FLS - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

FLS delivered a trailing four-quarter average earnings surprise of 5.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2025 earnings has increased 4.7%.

Crane Company (CR - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 7.5%.

In the past 60 days, the consensus estimate for CR’s 2025 earnings has increased 4%.

Dover Corporation (DOV - Free Report) presently carries a Zacks Rank of 2. DOV delivered a trailing four-quarter average earnings surprise of 4%.

In the past 60 days, the consensus estimate for DOV’s 2025 earnings has inched up 1.2%.

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