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Zebra Technologies Corporation (NASDAQ:ZBRA) saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$538 and falling to the lows of US$378. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Zebra Technologies' current trading price of US$378 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Zebra Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Zebra Technologies
What's the opportunity in Zebra Technologies?
Great news for investors – Zebra Technologies is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $626.49, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Zebra Technologies’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What kind of growth will Zebra Technologies generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Zebra Technologies' earnings over the next few years are expected to increase by 37%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since ZBRA is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on ZBRA for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ZBRA. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.