Zebra Technologies Corporation (NASDAQ:ZBRA), a electronic company based in United States, received a lot of attention from a substantial price movement on the NasdaqGS over the last few months, increasing to $160.94 at one point, and dropping to the lows of $133.12. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Zebra Technologies’s current trading price of $140.53 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Zebra Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What’s the opportunity in Zebra Technologies?Great news for investors – Zebra Technologies is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $195.14, but it is currently trading at US$141 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Zebra Technologies’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from Zebra Technologies?Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Zebra Technologies’s 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? Since ZBRA is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on ZBRA for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ZBRA. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Zebra Technologies. You can find everything you need to know about Zebra Technologies in the latest infographic research report. If you are no longer interested in Zebra Technologies, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.