Is Zebra Technologies Stock Underperforming the Dow?

Yahoo

7 days ago

With a market cap of $20.4 billion, Zebra Technologies Corporation (ZBRA) is a global leader in enterprise asset intelligence. The Lincolnshire, Illinois-based company offers a comprehensive suite of products and services, ranging from barcode scanners and mobile computing devices to RFID technologies, that help businesses across various industries enhance operational efficiency and gain real-time visibility into their assets and data.
Companies valued at $10 billion or more are generally classified as 'large-cap' stocks, and Zebra Technologies fits right into that category. Its deep industry expertise and focus on innovation allow it to serve diverse sectors like retail, healthcare, manufacturing, and logistics. The company benefits from a global customer base, robust R&D capabilities, and a solid reputation for reliability and performance, which together drive consistent demand and long-term customer relationships.
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Shares of ZBRA are trading 31.3% below their 52-week high of $427.76, which they hit on Jan. 22. The stock has gained 3.2% over the past three months, outperforming the broader Dow Jones Industrial Average's ($DOWI) marginal rise during the same time frame.
However, in 2025, ZBRA has dipped 23.9% compared to $DOWI's marginal drop. Over the past year, ZBRA's marginal fall lags the $DOWI's 7.9% rise.
ZBRA has been trading below its 200-day moving average since mid-February but has been trading over its 50-day moving average since early May.
Following the release of its upbeat Q1 results on April 29, Zebra Technologies' stock climbed 5.2%. The company reported net sales of $1.3 billion, an 11.3% increase from the prior year, fueled by robust demand and well ahead of Wall Street expectations. Solid margin improvements helped drive a 41.5% year-over-year surge in adjusted net income to $208 million. Its adjusted EPS reached $4.02, beating consensus estimates by 11.1%. Additionally, Zebra reinforced its shareholder commitment by repurchasing $125 million worth of stock during the quarter, signaling confidence in its valuation.
ZBRA has substantially outperformed its top rival, Lam Research Corporation (LRCX), which has fallen 14.7% over the past year.
The stock has a consensus rating of 'Moderate Buy' from 16 analysts in coverage. The mean price target of $324.21 indicates a potential upside of 10.3% from the prevailing market prices.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com