Back to top

Image: Bigstock

Here's How Much a $1000 Investment in Zebra Technologies Made 10 Years Ago Would Be Worth Today

Read MoreHide Full Article

How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

Another factor that can influence investors is FOMO, or the fear of missing out, especially 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 2022-end, it had around 10,500 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 (34.4% of total revenues in 2023): 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 (65.6%): 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.

A $1000 investment made in February 2014 would be worth $4,219.20, or a 321.92% gain, as of February 23, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 177.03% and gold's return of 47.01% over the same time frame.

Going forward, analysts are expecting more upside for ZBRA.

The healthy demand for RFID (radio frequency identification), services and software is likely to aid Zebra Technologies. Improving supply chains and reduced product lead times are expected to help the company stay afloat as it grapples with weakness across its end markets. ZBRA’s efforts to reward shareholders despite the uncertain environment hold promise. In 2023, ZBRA repurchased shares worth $52 million. Its cost-reduction actions are likely to be advantageous. Amid low demand across end markets, the company provided a bleak forecast. For the first quarter of 2024, it expects revenues to drop 17-20% year over year. Weakness in the mobile computing and data capture solution markets has been taking a toll on the Enterprise Visibility & Mobility segment. Forex woes and a weak liquidity position are other concerns for Zebra.

Over the past four weeks, shares have rallied 8.75%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Zebra Technologies Corporation (ZBRA) - free report >>

Published in