Zebra Technologies Co., Ltd. (ZBRA – Free Report) is growing stronger with its asset intelligence and tracking division, acquired assets, and shareholder-friendly moves.
Let's take a closer look at what makes this Zacks #1 Rank (Strong Buy) company a smart investment choice right now.
Business strengths: Zebra Technologies is benefiting from growth across services, software and radio frequency identification (RFID) products. Improving supply chains and shortening product lead times will lead to company growth. Pricing and strong sales of RFID products are supporting the asset intelligence and tracking sector. Increased sales of services and software, as well as contributions from recent acquisitions, bode well for the enterprise visibility and mobility sector.
Expansion efforts: The company has taken advantage of business opportunities by strengthening its product portfolio and adding assets. In this regard, the company's acquisition of his Matrox Imaging (June 2022) made it possible to combine the company's fixed industrial scanning and machine vision portfolio with the latter's expertise in the imaging market. Ta. The acquisition of antuit.ai (October 2021) complemented the planning and demand forecasting modules of the company's retail software portfolio. Our acquisition of Fetch Robotics (August 2021) strengthens our ability to offer our customers a comprehensive line of advanced robotics solutions.
Cost management actions: Zebra Technologies continues to focus on cost management activities. The company announced expanded cost-cutting efforts, including $65 million in annual incremental cost savings, to address end-market slowdowns and weak demand. Combined with cost-cutting activities undertaken over the past year, the company expects to generate approximately $120 million in annual cost savings.
Benefits for shareholders: Zebra Technologies' move to continue returning profits to shareholders despite the market downturn is encouraging. The company repurchased $52 million worth of stock in 2023. Although free cash flow was negative in 2023, the company expects the same amount to be at least $550 million in 2024. This would confirm the company's shareholder-friendly policies.
Correction of northward estimate: The Zacks Consensus Estimate for ZBRA's 2024 earnings has been revised 3.8% upward over the past 60 days.
Price performance: Zebra Technologies stock has increased 34.1% over the past six months, outpacing the industry's rise of 25.6%.
Other stocks to consider
Other top companies in the industrial products sector are discussed below.
Applied Industrial Technologies Co., Ltd. (AIT – Free Report) currently sports a Zacks Rank #1. His average return over the subsequent four quarters was an astonishing 10.4%.You can see See the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AIT's fiscal 2024 earnings has increased 1% over the past 60 days. The stock price has increased 17.6% in the past six months.
Illinois Tool Works Co., Ltd. (ITW – Free Report) currently has a Zacks Rank #2 (Buy) and the company's average expected fourth-quarter earnings are 3.3%.
ITW's 2024 earnings forecast has remained flat over the past 60 days. Illinois Tool stock has increased 11.4% over the past six months.
AO Smith Co., Ltd. (AOS – Free Report) currently has a Zacks Rank of 2. His four-quarter average return for the company has been an impressive 12%.
The Zacks Consensus Estimate for AOS's 2024 earnings has increased 1.2% over the past 60 days. AO Smith stock has soared 24.7% in the past six months.
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