We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reasons to Retain Zebra (ZBRA) Stock in Your Portfolio Now
Read MoreHide Full Article
Zebra Technologies Corporation (ZBRA - Free Report) has been benefiting from strength across its businesses. Higher sales of RFID (radio frequency identification) products, driven by the robust demand in retail and retail apparel markets, and increased parcel tracking in transportation logistics markets and airports are aiding the company’s growth. Also, Zebra Technologies has been advancing digital capabilities, optimizing the supply chain, expanding its data analytics capability and focusing on marketing activities to better engage with customers. The company expects its net sales to increase in the range of 1-5% year over year in 2024.
The company intends to strengthen and expand its businesses through acquisitions. ZBRA’s acquisition of Matrox Imaging (June 2022) enabled it to combine its fixed industrial scanning and machine vision portfolio with the latter’s expertise in the imaging market. The buyout of antuit.ai (October 2021) complemented the planning and demand forecasting module for its retail software portfolio. Also, the Fetch Robotics buyout (August 2021) boosted its capability to offer a comprehensive line of advanced robotics solutions to customers.
Zebra Technologies remains committed to rewarding its shareholders through dividend payouts. Though the company did not repurchase any shares in the first three months of 2024, it repurchased shares worth $52 million in 2023. In May 2022, its board of directors authorized a share repurchase program for up to $1 billion. Exiting the first quarter of 2024, ZBRA had $893 million remaining under this program.
Also, the company remains focused on cost-management actions. ZBRA announced expanded cost-reduction actions as it has been grappling with a slowdown in end markets. It expects to generate annualized net cost savings of about $120 million.
Image Source: Zacks Investment Research
In the past six months, this Zacks Rank #3 (Hold) company has gained 34.5% compared with the industry’s 20.7% growth.
However, the company has been bearing the brunt of weak demand for data capture and mobile computing products. Also, the low demand for printing solutions has been affecting the performance of its Asset Intelligence & Tracking segment. These setbacks collectively impacted the company's first-quarter overall revenues, which totaled $1.2 billion, indicating a decline of 16.4% year over year.
ZBRA’s weak liquidity position is also concerning. Exiting first-quarter 2024, the company’s cash and cash equivalents totaled $127 million, less than the current portion of long-term debt of $272 million.
Stocks to Consider
Some better-ranked companies from the Zacks Industrial Products sector are discussed below.
The Zacks Consensus Estimate for FLS’ 2024 earnings has increased 0.8% in the past 60 days.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 8.2%. The Zacks Consensus Estimate for AIT’s fiscal 2024 earnings has been stable in the past 60 days.
John Bean Technologies (JBT - Free Report) presently has a Zacks Rank of 2. JBT delivered an earnings surprise of 3.7% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for John Bean Technologies’ 2024 earnings has increased 0.2%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Reasons to Retain Zebra (ZBRA) Stock in Your Portfolio Now
Zebra Technologies Corporation (ZBRA - Free Report) has been benefiting from strength across its businesses. Higher sales of RFID (radio frequency identification) products, driven by the robust demand in retail and retail apparel markets, and increased parcel tracking in transportation logistics markets and airports are aiding the company’s growth. Also, Zebra Technologies has been advancing digital capabilities, optimizing the supply chain, expanding its data analytics capability and focusing on marketing activities to better engage with customers. The company expects its net sales to increase in the range of 1-5% year over year in 2024.
The company intends to strengthen and expand its businesses through acquisitions. ZBRA’s acquisition of Matrox Imaging (June 2022) enabled it to combine its fixed industrial scanning and machine vision portfolio with the latter’s expertise in the imaging market. The buyout of antuit.ai (October 2021) complemented the planning and demand forecasting module for its retail software portfolio. Also, the Fetch Robotics buyout (August 2021) boosted its capability to offer a comprehensive line of advanced robotics solutions to customers.
Zebra Technologies remains committed to rewarding its shareholders through dividend payouts. Though the company did not repurchase any shares in the first three months of 2024, it repurchased shares worth $52 million in 2023. In May 2022, its board of directors authorized a share repurchase program for up to $1 billion. Exiting the first quarter of 2024, ZBRA had $893 million remaining under this program.
Also, the company remains focused on cost-management actions. ZBRA announced expanded cost-reduction actions as it has been grappling with a slowdown in end markets. It expects to generate annualized net cost savings of about $120 million.
Image Source: Zacks Investment Research
In the past six months, this Zacks Rank #3 (Hold) company has gained 34.5% compared with the industry’s 20.7% growth.
However, the company has been bearing the brunt of weak demand for data capture and mobile computing products. Also, the low demand for printing solutions has been affecting the performance of its Asset Intelligence & Tracking segment. These setbacks collectively impacted the company's first-quarter overall revenues, which totaled $1.2 billion, indicating a decline of 16.4% year over year.
ZBRA’s weak liquidity position is also concerning. Exiting first-quarter 2024, the company’s cash and cash equivalents totaled $127 million, less than the current portion of long-term debt of $272 million.
Stocks to Consider
Some better-ranked companies from the Zacks Industrial Products sector are discussed below.
Flowserve Corporation (FLS - Free Report) presently sports a Zacks Rank #1 (Strong Buy) and has a trailing four-quarter earnings surprise of 21.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FLS’ 2024 earnings has increased 0.8% in the past 60 days.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 8.2%. The Zacks Consensus Estimate for AIT’s fiscal 2024 earnings has been stable in the past 60 days.
John Bean Technologies (JBT - Free Report) presently has a Zacks Rank of 2. JBT delivered an earnings surprise of 3.7% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for John Bean Technologies’ 2024 earnings has increased 0.2%.