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Zebra Technologies (ZBRA) Soars to a 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Zebra Technologies (ZBRA - Free Report) ? Shares have been on the move with the stock up 6.3% over the past month. ZBRA hit a new 52-week high of $159.40 in the previous session. Zebra Technologies has gained 53.2% since the start of the year compared to the -5.6% move for the Industrial Products sector and the 8% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 8, 2018, Zebra Technologies reported EPS of $2.56 versus the Zacks Consensus Estimate of $2.06 while it beat the consensus revenue estimate by 4.33%.
For the current fiscal year, Zebra Technologies is expected to post earnings of $9.77 per share on $4 billion in revenues. This represents a 38.58% change in EPS on a 7.43% change in revenues. For the next fiscal year, the company is expected to earn $10.35 per share on $4.12 billion in revenues. This represents a year-over-year change of 5.9% and 3.07%, respectively.
Valuation Metrics
Zebra Technologies may be at a 52-week high right now, but what might the future hold for ZBRA? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Zebra Technologies has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.3X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 13.1X versus its peer group's average of 16.3X. Additionally, the stock has a PEG ratio of 3.25. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zebra Technologies Corporation Price and Consensus
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Zebra Technologies currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 or 2 (Buy) and Style Scores of A or B, it looks as if Zebra Technologies fits the bill. Thus, it seems as though ZBRA shares could have a bit more room to run in the near term.
How Does Zebra Technologies Stack Up to the Competition?
Shares of Zebra Technologies have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Kaman , Caterpillar (CAT - Free Report) , and Rockwell Automation (ROK - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for Zebra Technologies. Still, the fundamentals for ZBRA are promising, and it still has potential despite being at a 52-week high.
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Zebra Technologies (ZBRA) Soars to a 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Zebra Technologies (ZBRA - Free Report) ? Shares have been on the move with the stock up 6.3% over the past month. ZBRA hit a new 52-week high of $159.40 in the previous session. Zebra Technologies has gained 53.2% since the start of the year compared to the -5.6% move for the Industrial Products sector and the 8% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 8, 2018, Zebra Technologies reported EPS of $2.56 versus the Zacks Consensus Estimate of $2.06 while it beat the consensus revenue estimate by 4.33%.
For the current fiscal year, Zebra Technologies is expected to post earnings of $9.77 per share on $4 billion in revenues. This represents a 38.58% change in EPS on a 7.43% change in revenues. For the next fiscal year, the company is expected to earn $10.35 per share on $4.12 billion in revenues. This represents a year-over-year change of 5.9% and 3.07%, respectively.
Valuation Metrics
Zebra Technologies may be at a 52-week high right now, but what might the future hold for ZBRA? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Zebra Technologies has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.3X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 13.1X versus its peer group's average of 16.3X. Additionally, the stock has a PEG ratio of 3.25. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zebra Technologies Corporation Price and Consensus
Zebra Technologies Corporation Price and Consensus | Zebra Technologies Corporation Quote
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Zebra Technologies currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 or 2 (Buy) and Style Scores of A or B, it looks as if Zebra Technologies fits the bill. Thus, it seems as though ZBRA shares could have a bit more room to run in the near term.
How Does Zebra Technologies Stack Up to the Competition?
Shares of Zebra Technologies have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Kaman , Caterpillar (CAT - Free Report) , and Rockwell Automation (ROK - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for Zebra Technologies. Still, the fundamentals for ZBRA are promising, and it still has potential despite being at a 52-week high.