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Here's How Much You'd Have If You Invested $1000 in Zebra Technologies a Decade Ago

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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in Zebra Technologies (ZBRA - Free Report) ten years ago? It may not have been easy to hold on to ZBRA for all that time, but if you did, how much would your investment be worth today?

Zebra Technologies' Business In-Depth

With that in mind, let's take a look at Zebra Technologies' main business drivers.

Headquartered in Lincolnshire, IL, Zebra Technologies Corporation is the leading provider of enterprise asset intelligence solutions in the automatic identification and data capture solutions industry throughout the world. The company has a diversified portfolio of product and solutions that includes cloud-based subscriptions and a full range of services like maintenance, repair, technical support, managed and professional services. The products and solutions, which are sold across 180 countries, are designed to help its customers achieve enhanced operational efficiency, increased asset utilization, optimized workflows and improved regulatory compliance. As of 2021-end, it had around 9,800 employees globally.

Key end markets served by the company include manufacturing, retail and e-commerce, transportation and logistics, public sector, healthcare, and other industries throughout the world. Products are sold directly through sales representatives and an extensive network of channel partners.

The company reports operations under two reporting segments — Asset Intelligence & Tracking (“AIT”) and Enterprise Visibility & Mobility (“EVM”). The segments are briefly discussed below:

AIT (30.3% of total revenues in the fourth quarter of 2021): This segment specializes in barcode printing and asset tracking technologies. Its key product lines comprise barcode and card printers, services, supplies, and location solutions. These products are sold primarily in North America, Europe, Middle East and Africa (“EMEA”), Latin America and Asia-Pacific.

EVM (69.7%): This segment specializes in automatic information and data capture solutions. Its key product lines comprise mobile computing, data capture, services, RFID, retail as well as software-based workflow optimization solutions. These products are sold primarily in North America, EMEA, Latin America and the Asia-Pacific.

It’s worth noting that in the first quarter of 2021, the company shifted its retail solutions offering from the Asset Intelligence & Tracking segment into the Enterprise Visibility & Mobility segment.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Zebra Technologies a decade ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in March 2012 would be worth $10,716.09, or a gain of 971.61%, as of March 23, 2022, and this return excludes dividends but includes price increases.

The S&P 500 rose 223.93% and the price of gold increased 11.04% over the same time frame in comparison.

Analysts are anticipating more upside for ZBRA.

Zebra’s fourth-quarter 2021 earnings beat the Zacks Consensus Estimate by 5.1%, while revenues beat the same by 1.4%. The company stands to benefit from a solid demand environment, coupled with investments in growth initiatives, in the quarters ahead. The growing popularity of the company’s Enterprise Asset Intelligence solutions is likely to be beneficial. For 2022, it expects net sales to grow 3-7% year over year. Strong cash flow allows it to invest in organic growth, execute acquisitions and repurchase shares. However, in the past three months, its shares have underperformed the industry. The stock is overvalued compared with the industry. Rising costs and expenses pose a major concern for the company. Supply chain challenges are likely to persist in the near term. Risks related to international exposure might affect its performance.

Shares have gained 5.84% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.

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