Zebra Technologies Up to Strong Buy - Analyst Blog


Zacks Investment Research upgraded Zebra Technologies Corp. ( ZBRA ) to a Zacks Rank #1 (Strong Buy) on Jan 8, 2014.

Why the Upgrade?

Zebra Technologies reported impressive financial results for the third quarter 2013 on Nov 5, 2013. Since then the company's shares have risen by 2.1%. Earnings per share came in at 77 cents, up from 70 cents reported in the year-ago quarter and 11.6% above the Zacks Consensus Estimate of 69 cents.

Sales came in at $264 million, up 4.6% over the year-ago quarter on the back of solid sales growth in the Asia-Pacific and North America. Among product category, Supplies recorded an 11.7% increase, Service and software 11.0% and Hardware 2.0%. Operating margin in the quarter came in at 17.7% versus 15.4% in the year-ago quarter.

Apart from the impressive third quarter, Zebra Technologies acquired Hart Systems in Dec 2013. The acquired firm is well known for its cloud-based physical inventory management solutions. The transaction will enable the company to expand its business and will be accretive to earnings immediately.

Also, Zebra Technologies entered into a strategic partnership with Entigral Systems, Inc. The primary aim of the partnership is to support Zebra's cloud-based platform, Zatar, which is especially designed for enterprise sensor data collection and management.

In the last 60 days, the Zacks Consensus Estimate for Zebra Technologies increased 0.3% to $3.04 for 2014. This represents 15.2% year-over-year growth. Currently, the company has an Earnings ESP of +12.2% for 2014.

Other Stocks to Consider

Zebra Technologies is a $2.7 billion diversified machinery company. Other stocks worth considering in the industry include Lennox International, Inc. ( LII ), Crane Co. ( CR ) and Rockwell Automation Inc. ( ROK ). All these companies carry a Zacks Rank #2 (Buy).

CRANE CO (CR): Free Stock Analysis Report

LENNOX INTL INC (LII): Free Stock Analysis Report

ROCKWELL AUTOMT (ROK): Free Stock Analysis Report

ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: CR , LII , ROK , ZBRA



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