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Zebra (ZBRA) Stock Jumps 4.3%: Will It Continue to Soar?

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Zebra Technologies Corporation (ZBRA - Free Report) shares rallied 4.3% in the last trading session to close at $437.18. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1% loss over the past four weeks.

Zebra’s rally is primarily driven by optimism regarding the company’s strong momentum in its enterprise asset intelligence business. Robust demand for the company’s printing and supplies, enterprise mobile computing, intelligent automation solutions, data capture as well as services and software bodes well.

This producer of printers for bar codes, plastic cards and, radio-frequency identification tags is expected to post quarterly earnings of $4.01 per share in its upcoming report, which represents a year-over-year change of -16.3%. Revenues are expected to be $1.37 billion, up 1.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Zebra, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ZBRA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Zebra is part of the Zacks Manufacturing - Thermal Products industry. Pentair plc (PNR - Free Report) , another stock in the same industry, closed the last trading session 0.5% higher at $57.22. PNR has returned -1.2% in the past month.

For Pentair plc, the consensus EPS estimate for the upcoming report has changed -1% over the past month to $0.81. This represents no change from what the company reported a year ago. Pentair plc currently has a Zacks Rank of #3 (Hold).


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