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Zebra Technologies - AI Stock Analysis

Analysis generated October 7, 2024

Zebra Technologies (NASDAQ: ZBRA) is a global leader in industrial automation and data capturing technologies. The company specializes in scanning, barcoding, RFID, and mobile computing solutions, which cater to multiple industries ranging from healthcare to logistics and retail. Zebra Technologies focuses on providing end-to-end solutions that enable businesses to enhance productivity and operational efficiencies through innovative products and services. The company's strategic acquisitions and R&D investments have further bolstered its technological prowess and market reach.

Fundamental Analysis

The revenue for the last quarter was $1.16 billion, which marks an 8.00% increase compared to the quarter before it. This uptick is a positive sign, suggesting growth momentum in the short term. However, it’s important to note that compared to the same quarter last year, revenue has decreased by 15.19%. This decline could be a red flag, potentially indicating challenges in sustained long-term growth.

Net income for the last quarter was $115 million, a substantial 576.47% increase compared to the previous quarter, signaling robust short-term profitability and efficient cost management. Yet, compared to the same quarter last year, net income decreased by 23.33%, which may raise concerns about consistent profitability.

EBITDA was $202 million for the last quarter, an impressive 71.19% increase from the previous quarter, further underlining positive operational efficiency. But like revenue and net income, EBITDA decreased 24.91% year over year, indicating challenges in maintaining yearly performance levels.

The current P/E ratio stands at 82.59, which is considerably high. A high P/E ratio could indicate that the stock is overvalued, pointing to a bearish outlook. Investors need to be cautious as such valuation levels often warrant closer scrutiny of growth prospects to justify the premium pricing.

Technical Analysis

Today’s stock price is $361.02, showing a significant 12.55% increase compared to a month ago. This movement signifies a positive short-term trend. Additionally, the stock price has surged by 61.28% over the past year, suggesting a strong positive long-term trend.

However, the trend remains bearish. The current SMA10 is $366.56, which is slightly lower than the previous SMA10 of $367.32, suggesting potential downward momentum in price movement. Additionally, the RSI is at 22.7, indicating that the stock is oversold, which could point to a potential bullish condition if buyers step in.

Alternative Data Analysis

According to the most popular job boards, Zebra Technologies has 244 open positions, representing a 26% increase in the last couple of months. This hiring activity indicates potential growth and expansion plans, which is a healthy sign for the company.

The business outlook among employees at Zebra Technologies is neutral, which suggests a balanced view among staff regarding the company’s future.

Zebra Technologies has an estimated 2.6 million visitors to their webpage, increasing by 14% in recent months. This increase signifies a bullish trend as it can indicate potential customer growth. The company additionally has 33,000 followers on Twitter, a stable figure without meaningful change, reflecting consistent customer engagement.

According to AltIndex’s AI score, which predicts a company’s stock price based on fundamental, technical, and alternative data, Zebra Technologies has an AI score of 47, signifying a hold signal. This balanced score highlights a neutral stance on the company’s future stock performance.

Conclusion

Zebra Technologies presents a mixed bag with both promising and concerning elements across various dimensions. Short-term growth metrics such as revenue, net income, and EBITDA have shown promising increases quarter-over-quarter, yet their year-over-year declines warrant caution. The high P/E ratio suggests that the stock might be overvalued.

Technical indicators reflect bullish potential in the long run but bear some signs of short-term downward momentum. Alternative data, including increased job postings and website visitors, paint a positive picture for potential growth, though employee sentiment remains neutral.

Considering all the data, Zebra Technologies appears to be a stock suitable for cautious long-term investment. The recommended action would be to hold the stock, as suggested by AltIndex’s AI score, while keeping a close watch on both the market conditions and the company's financial performance.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.