Zacks Investment Research upgraded
Zebra Technologies Corp.
) 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
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
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
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.
Rockwell Automation Inc.
). All these companies carry a Zacks Rank #2 (Buy).
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ZEBRA TECH CL A (ZBRA): Free Stock Analysis
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