Zebra Technologies: Ups and Downs in the Technological Sector

Zebra Technologies, a company from Lincolnshire, Illinois, specializing in enterprise asset intelligence solutions, is among the major players in the field of automatic identification and data capture worldwide. With a market capitalization of an impressive $16.2 billion, Zebra is clearly classified as a "large-cap stock," highlighting its significant position in the technology sector. Despite its strengths, Zebra Technologies has experienced a decline of 25.5% from its three-year high of $427.76 reached on January 22. Nonetheless, the stock rose by 9.2% in the last three months, but lagged behind the 15.4% increase of the Technology Select Sector SPDR Fund (XLK) during the same period. Over the longer term, Zebra's performance has been even more disappointing: the stock fell by 17.5% year-to-date and by 12.4% over the past 52 weeks, while XLK rose by 20% in 2025 and by 24.7% last year. Since mid-February, ZBRA shares have consistently remained below their 200-day moving average, while mostly staying above their 50-day moving average since early May. This indicates past downward movements and recent upward trends. Although the company reported better-than-expected results, Zebra Technologies' shares fell by 11.4% following the release of the second-quarter results on August 5. Thanks to a lower-than-expected impact from tariffs and solid demand, overall revenue rose by 6.2% year-over-year to $1.3 billion. Non-GAAP earnings per share increased by an impressive 13.5% to $3.61, surpassing consensus estimates by 9.1%. The stock decline is largely attributed to the market's reaction to Zebra's announcement of acquiring Elo Touch Solutions for $1.3 billion. Compared to its competitors, Zebra also performed worse than Hewlett Packard Enterprise, whose stock rose by 17.1% in 2025 and by 32.6% over the past 52 weeks. Nevertheless, the 17 analysts following ZBRA stock remain optimistic, rating it a "Moderate Buy." The average price target of $362.50 implies an upside potential of 13.8%.