Zebra Technologies Corp (ZBRA, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $14.91 billion. The current price of ZBRA stock is $290.29, reflecting a 2.37% gain over the past week and a more significant 17.30% gain over the past three months. According to the GF Value, the stock is currently fairly valued at $292.95, a slight adjustment from the past GF Value of $344.53, which indicated the stock was significantly undervalued. This shift in valuation suggests that the market is recognizing ZBRA's potential and adjusting its price accordingly.
Introduction to Zebra Technologies Corp
Zebra Technologies Corp, operating within the hardware industry, is a leading provider of automatic identification and data capture technology. The company offers a range of solutions, including barcode printers and scanners, mobile computers, and workflow optimization software. Zebra Technologies primarily serves sectors such as retail, transportation logistics, manufacturing, and healthcare, focusing on creating custom solutions to enhance operational efficiency for its customers. 
Assessing Zebra Technologies' Profitability
With a Profitability Rank of 8/10, Zebra Technologies stands out in its industry. The company's operating margin is an impressive 15.07%, surpassing 87.33% of 2,454 companies in the hardware sector. Its return on equity (ROE) is 16.27%, higher than 86.11% of its peers, while the return on assets (ROA) at 6.24% and return on invested capital (ROIC) at 9.95% also demonstrate strong profitability metrics. Over the past decade, Zebra Technologies has maintained profitability for 8 years, showcasing its consistent performance. 
Growth Trajectory of Zebra Technologies
The company's Growth Rank is also impressive at 8/10. Zebra Technologies has achieved a 3-year revenue growth rate per share of 10.20% and a 5-year rate of 9.60%, indicating consistent top-line expansion. However, the estimated total revenue growth rate for the next 3 to 5 years is projected at -0.62%. Despite this, the 3-year EPS without NRI growth rate stands at 13.30%, and the 5-year rate is a robust 55.10%. The estimated EPS growth rate for the next 3 to 5 years is 3.21%, suggesting that earnings may continue to grow, albeit at a slower pace. 
Notable Shareholders in Zebra Technologies
Among the notable investors in Zebra Technologies, John Rogers (Trades, Portfolio) holds 470,461 shares, representing 0.92% of the company's shares. Sarah Ketterer (Trades, Portfolio) is another significant shareholder with 280,774 shares, accounting for 0.55% of the shares. Lastly, Joel Greenblatt (Trades, Portfolio) holds a smaller stake of 9,658 shares, which translates to 0.02% of the company's shares. These investors' commitments to Zebra Technologies highlight their confidence in the company's future prospects.
Competitive Landscape
When comparing Zebra Technologies to its competitors, it holds a strong position with a market cap of $14.91 billion. Juniper Networks Inc (JNPR, Financial) has a market cap of $11.94 billion, Ubiquiti Inc (UI, Financial) is valued at $7.45 billion, and Ciena Corp (CIEN, Financial) stands at $8.24 billion. Zebra Technologies' market cap suggests that it is a significant player in the hardware industry, potentially offering a competitive edge over its peers.
Conclusion: Zebra Technologies' Market Position
In conclusion, Zebra Technologies Corp's recent stock price rally can be attributed to its solid profitability, consistent growth, and strong market position relative to its competitors. The company's fair valuation according to the GF Value, alongside its impressive profitability and growth ranks, paints a picture of a robust company with a stable financial foundation. While future revenue growth estimates indicate a slight downturn, the company's historical performance and the continued interest from notable investors suggest that Zebra Technologies is well-equipped to navigate the challenges ahead and continue to thrive in the competitive hardware industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
