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Zebra Technologies (ZBRA) Valuation Check After Strong Q3 Beat and New Digimarc Fraud-Prevention Partnership

Simply Wall St · 2d ago

Zebra Technologies (ZBRA) has caught investors’ attention after a solid third quarter and upbeat guidance, helped by lower tariffs and tighter cost control, along with a new fraud-fighting partnership with Digimarc in retail checkout.

See our latest analysis for Zebra Technologies.

Even with the upbeat quarter and fresh initiatives like the Digimarc partnership and Elo integration, the stock’s recent momentum has only partially checked a much steeper slide. A roughly flat 1 month share price return sits against a still deeply negative year to date share price trend and weak 1 year total shareholder return, while the modestly positive 3 year total shareholder return hints that long term holders have at least clawed back some gains.

If you are weighing Zebra’s recovery prospects, it can also be a smart time to see what else is working in enterprise tech and automation via high growth tech and AI stocks.

With shares still down sharply over the past year but trading at a sizable discount to analyst targets, is Zebra quietly undervalued after a tough cycle, or are markets already baking in a durable growth rebound?

Most Popular Narrative: 26.1% Undervalued

Compared with the last close at $264.81, the most followed narrative pegs Zebra’s fair value far higher, implying sizeable upside if its assumptions play out.

The accelerating shift toward automation, digital transformation, and real-time workflow optimization, driven by ongoing labor shortages, e-commerce expansion, and increased supply chain demands, continues to fuel robust demand for Zebra's portfolio (hardware, software, RFID, machine vision), supporting sustained revenue growth and long-term earnings visibility.

Read the complete narrative.

Want to see what kind of revenue runway and profit margin lift this vision expects, and which earnings multiple has to hold up to make it work? Read on to see the full story driving that fair value call.

Result: Fair Value of $358.47 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softness in key regions and slower than expected growth in higher margin software and services could stall margin expansion and undermine the recovery narrative.

Find out about the key risks to this Zebra Technologies narrative.

Build Your Own Zebra Technologies Narrative

If you see the numbers differently or want to stress test your own assumptions, you can build a full narrative in minutes, starting with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Zebra Technologies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.