Why Zebra Technologies Is a Top Pick Right Now

August 28, 2024 07:15 PM AEST | By Team Kalkine Media

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Headlines

Zebra’s Growth in Enterprise Visibility & Mobility
Strategic Acquisitions Fuel Expansion
Strong Margin Improvement and Cost Savings

Zebra Technologies Corporation (NASDAQ:ZBRA) is experiencing notable growth in its Enterprise Visibility & Mobility segment. The segment's revenue surged by 8.6% year over year in Q2 2024, driven by increased sales of mobile computing products.

The company is enhancing its digital capabilities, optimizing the supply chain, and expanding its data analytics. These initiatives are expected to lead to a 4-7% increase in net sales for 2024. Zebra's strategic acquisitions, including Matrox Imaging, antuit.ai, and Fetch Robotics, have strengthened its product offerings and market presence.

Zebra is also focusing on cost management. The company's gross margin rose by 50 basis points to 48.4% in Q2, thanks to lower freight costs. The completion of its 2022 productivity plan and employee voluntary retirement plan is projected to generate annualized net cost savings of about $120 million, which will support further investments in growth.

In the past year, Zebra's stock has appreciated by 26.5%, outpacing the industry’s 21.2% growth. Despite facing challenges in the Asset Intelligence & Tracking segment and high debt levels, Zebra's strategic initiatives and cost management efforts are positioning it for continued success and expansion.

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