Zebra Technologies Gains High Rating Among Growth Stocks

Zebra Technologies Corp (ZBRA) excels as growth stock, scoring 62% based on key fundamentals from the Growth Investor model. However, challenges lie in revenue growth compared to EPS, declining earnings persistence, and high debt levels.

Date: 16-04-2025

AI Rating: 5

**Overview of Zebra Technologies Corp's Performance**
Zebra Technologies Corp (ZBRA) has showcased a performance that places it at a high ranking among the growth stocks considering the reported rating of 62% using the Growth Investor model. This model focuses on companies that display accelerating earnings and sales growth, reasonable valuations, and low debt. A score of 62% indicates a solid position although it falls short of the 80% mark that typically signifies higher investor interest.

**Earnings Per Share (EPS) and Revenue Growth**
The report indicates several key metrics concerning Zebra’s financial performance with respect to EPS. While the company has managed to outperform prior quartiles in terms of EPS growth for the current quarter, it has faced challenges in both revenue growth in relation to EPS growth and in long-term EPS growth. This discrepancy is significant, reflecting concerns over the sustainability of earnings growth moving forward. Since strong revenue growth often supports rising EPS, the current underperformance in this area is concerning for potential and current investors.

**Profitability Metrics**
Despite some positive indicators, Zebra Technologies struggles with fundamental aspects such as earnings persistence and overall debt ratios. The long-term EPS growth failure and a poorer debt-to-equity ratio highlight risks that may limit future profitability or growth potential.

**Investor Perspective**
From an investment standpoint, these mixed signals can create hesitancy. While Zebra has positive indicators in sales growth and quarterly earnings, the failures in critical areas such as revenue growth relative to EPS and the persistence of earnings can lead to increased volatility and uncertainties regarding the company's future. Investors typically look for consistent and dependable growth trajectories, and the current state suggests a potential for a cautious approach. Overall, the combined aspects present a defined risk for investors looking for strong short-term returns.

Stocks: ZBRA