Stock Analysis

Should You Investigate Zebra Technologies Corporation (NASDAQ:ZBRA) At US$309?

NasdaqGS:ZBRA
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Let's talk about the popular Zebra Technologies Corporation (NASDAQ:ZBRA). The company's shares received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Zebra Technologies’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Zebra Technologies

What's The Opportunity In Zebra Technologies?

According to my valuation model, Zebra Technologies seems to be fairly priced at around 19% below my intrinsic value, which means if you buy Zebra Technologies today, you’d be paying a fair price for it. And if you believe the company’s true value is $380.79, then there isn’t much room for the share price grow beyond what it’s currently trading. Although, there may be an opportunity to buy in the future. This is because Zebra Technologies’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from Zebra Technologies?

earnings-and-revenue-growth
NasdaqGS:ZBRA Earnings and Revenue Growth July 17th 2023

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Zebra Technologies' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in ZBRA’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on ZBRA, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Zebra Technologies, you'd also look into what risks it is currently facing. When we did our research, we found 3 warning signs for Zebra Technologies (1 shouldn't be ignored!) that we believe deserve your full attention.

If you are no longer interested in Zebra Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.