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If You Invested $1000 in Zebra Technologies 10 Years Ago, This Is How Much You'd Have Now

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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.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to 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, as well as 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 2023-end, it had around 9,750 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.

Zebra Technologies reports operations under two 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 the Asia-Pacific.

EVM (65.6%): This segment specializes in designing and manufacturing rugged and enterprise-grade mobile computing products and accessories. Its mobile computing products mostly include the Android operating system and support local-area and wide-area voice and data communications. Its key product lines also comprise data capture technologies, voice and video collaboration tools, RFID (radio frequency identification) 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

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Zebra Technologies ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in August 2014 would be worth $4,567.61, or a 356.76% gain, as of August 16, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 183.53% and the price of gold went up 80.83% over the same time frame.

Looking ahead, analysts are expecting more upside for ZBRA.

Zebra Technologies is focusing on advancing digital capabilities, optimizing the supply-chain and expanding data analytics capabilities to engage with its customers. Higher sales of mobile computing products are supporting the Enterprise Visibility & Mobility segment’s sales. Zebra Technologies’ cost-management actions are enabling it to cut down operating costs and improve margin performance. The company’s efforts to reward shareholders despite the uncertain environment can support prices. However, weak demand for printing solutions is affecting the company’s Asset Intelligence & Tracking segment. Low demand for RFID products is also concerning. High debt levels may also raise the company’s financial obligations and hurt profitability. Given its diverse presence, forex woes remain concerning.

Shares have gained 6.14% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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