Why You May Want to Invest in Zebra Technologies Stocks
If you are into investments in technological companies, you must have heard of Zebra Technologies. This company is the leading company in terms of data capture through scanners, barcode printers, mobile computing devices and even asset intelligence solutions.
Now, Zebra Technologies have continued to display strong dominance in terms of barcode scanners and printers, and also specialty computers. They are also very innovative when it comes to pushing the limits of the Internet of Things (IoT). Their innovative tendencies have seen them make some recent acquisitions that are sure to accelerate their growth.
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In this blog, we will be discussing Zebra Technologies as a company and why you might want to invest in the company. But before we talk about investments, let me give you a brief description of what the company is all about.
Zebra Technologies is a company that is best known and associated with making barcode scanners and printers, amongst other things. Once you see the famous black and white lines on any product, there is a good chance Zebra Technologies has something to do with it. This company can boast of more than 40% shares in barcode printers. Their nearest competition can only boast of about 12%, so you can tell the difference. They are also high stakeholders in the market for scanners.
Barcodes have been in use since the 1970s, so it is not like Zebra Technologies invented it. What makes the company stand out is the role they are playing in incorporating Radio Frequency ID (RFID) products to the already existing technology to make the difference and solve more complex problems.
There is more to barcode scanning and RFID that meets the eye. I mean they are not only used in stores to check prices of goods. They can also be used for asset management and tracking, managing goods from the warehouses to mail delivery, and they are even seen as the window to the Internet of Things (IoT).
I am excited about this company, Zebra Technologies. Now, let me explain why. Remember that back then in 2014, the company acquired Motorola for more than three billion dollars in cash. This was seen as a big gamble on data intelligence and rugged mobile devices, aimed at helping customers handle logistical problems. This is 2020, and we are beginning to see the bigger picture.
As of the close of November 24th, 2020, their stocks sold at 373.47 with a positive of 10.78 (+2.97%).
Zebra Technology’s mobile devices are now giving us an insight into industry verticals, ranging from scanning barcodes to making and managing cards for retail to monitoring assets. Motorola basically became the foundation of the company’s computing business and one part of the company, Enterprise Visibility and Mobility (EVM) is responsible for generating about two-third of the company’s revenue through data capturing, RFID services, and mobile computing.
The company’s management is not even relenting in its efforts to make sure there are more profits from the sale of their scanners, printers, and mobile computers. They are also pursuing other opportunities that are aimed at bringing in more sales to the company.
Now, Zebra Technologies is providing more adjacent opportunities. They work on a particular model “Sense, Analyze, and Act” and so far, it has been working for them. Picture it this way, they think of a package or asset that is moving along a supply chain, monitor the package or asset, and then act on what they have understood. This is moving the company towards provision of near accurate analysis and actionable Intel to clients.
The company Ford uses their real-time tracking technology to locate their inventory. Truman Medical centres use bracelets, staff communication, and scanned charts from Zebra Technologies to optimize workflow and surveillance. The NFL uses the RFID technology that the company provides to track ball and player movement, etc.
They have also acquired Cortexica Vision (machine vision and AI), Reflexis Systems (workforce management software), Temptime (remote temperature monitoring), and Profitect (retail analytics). Their innovation goes a long way and simply sticking an RFID tag comprised of Zebra Technologies can link you up to the Internet world.
When we talk about getting more value from the internet, Zebra Technologies may have the best strategy but patience is needed since the company’s business is experiencing a slow growth for now. Revenue has not been so great lately and the pandemic is partly to blame for it. The enforced lockdown affected many things and this company was no exception. However, the company is diversifying which is a good thing but comes with the disadvantage of too many competitors.
Barcodes may have stood the test of time, stretching back to the 70s. In fact, it still remains the most effective and cheapest way to link objects to databases. But Zebra Technologies has come up with more innovative ideas to incorporate into the barcode technology and that is what is making them stand out. In the future, their innovation is set to help them use barcode and RFID technologies to understand the workflow and logistics surrounding the objects, and it will definitely lead to better ways of going about your businesses and it will keep their company growing stronger in the long term.
The point here is companies that dominate the stock markets turn out to be long-term winners, and it is always easier to recognize when those particular companies manufacture exciting goods or products. So, I strongly recommend that you consider buying Zebra Technologies (NASDAQ: ZBRA) stocks because they are in a pole position to continue dominating the market and they have the potential to be even more successful. So, as a wise and prudent investor, you need to look at the prospects and understand that investing in Zebra Technologies is one for the future. So, if you learnt anything new from this blog, like it and share it, drop your views and comments and do not forget to subscribe to my channel.
Recommended books for further reading:
- Intelligent Investor – Benjamin Graham
- Rich Dad’s Guide to Investing – Robert T Kiyosaki
- The Barefoot Investor
- Rule #1: The Simple Strategy for Successful Investing
- How to Make Money in Stocks: A Winning System In Good Times And Bad