Zebra Technologies Corporation ZBRA shares have popped 71.3% in the past six months, in line with the Zacks Manufacturing - Thermal Products industry’s rise while topping the S&P 500’s increase of 14.1%.
ZBRA is benefiting from broad demand across retail, manufacturing and healthcare, with mobile computing, printing, machine vision and RFID (radio frequency identification) supporting growth across both segments. Its integrated hardware, software and services portfolio is deepening customer adoption of automation and artificial intelligence (AI)-enabled workflows, while Elo Touch and Photoneo expand its addressable opportunities. Healthy cash generation continues to support share repurchases and investment, while device upgrade cycles and growing software adoption strengthen the longer-term outlook.
Among its peers, Honeywell International Inc. HON and Avery Dennison Corporation AVY shares have declined 55.5% and 2.6%, respectively, over the same time frame.
ZBRA’s 6-month Price Performance
Technical indicators for ZBRA show bullish momentum. The ZBRA stock has been trading above its 50-day simple moving average (SMA) since June 22, 2026. It is also currently trading above its 200-day SMA, suggesting a long-term uptrend. The 50-day SMA is also reading higher than the 200-day SMA, following a golden crossover on July 13, 2026, indicating a bullish trend.
ZBRA Trades Above 50-Day SMA
Let’s take a look at ZBRA’s fundamentals to analyze the stock better.
ZBRA Rides on Business and Demand Strength
Zebra Technologies is witnessing growth across the healthcare, manufacturing and retail & e-commerce end markets. Higher sales of mobile computing solutions are driving the company’s Connected Frontline segment. Revenues from the segment increased 25.9% (up 7.5% organically) year over year in the second quarter of 2026.
Solid demand for printing solutions, machine vision, data capture and RFID products is boosting the Asset Visibility & Automation segment’s performance. In the second quarter of 2026, the segment’s sales increased 13.5% (up 11.4% on an organic basis) on a year-over-year basis.
Zebra Technologies has been advancing digital capabilities, optimizing the supply chain, expanding its data analytics capability and focusing on marketing activities to better engage with customers. Driven by these initiatives and solid demand for its products, the company expects third-quarter 2026 net sales to increase in the band of 17-20% from the prior-year level. The company expects its 2026 revenues to grow 14-16% from the year-ago level.
Accretive Acquisitions Broaden the Addressable Market
Zebra Technologies has steadily strengthened its business through acquisitions. In the second quarter of 2026, acquisitions and dispositions contributed 8.7 percentage points to total sales growth. In September 2025, Zebra Technologies completed the acquisition of Elo Touch Solutions, Inc. (Elo). The inclusion of Elo’s expertise in consumer-facing workflow, augmented by its suite of kiosks, edge computing, payment and touchscreen solutions, expands its addressable market by about $8 billion. The transaction expanded Zebra Technologies' reach across retail, healthcare, industrial and hospitality markets. In the second quarter of 2026, Elo delivered growth above management’s expectations, while joint selling efforts expanded the commercial pipeline and generated early customer wins.
In February 2025, Zebra Technologies acquired Photoneo, a market leader in the 3D machine vision solutions industry. The buyout enabled the company to combine Photoneo’s 3D machine vision solutions with its advanced sensors, vendor-agnostic software and AI-based image processing capabilities. This acquisition enhanced Zebra Technologies' portfolio of 3D machine vision solutions and addresses several challenges in high-value applications.
Cash Generation Backs ZBRA’s Shareholder-Friendly Actions
ZBRA generated $361 million of free cash flow in the first six months of 2026, up 25.3% year over year. The company now expects full-year 2026 free cash flow of at least $1 billion, up from its prior expectation of at least $900 million. This cash generation supports continued investment, debt flexibility and shareholder returns.
Zebra Technologies has continued rewarding its shareholders. The company repurchased shares worth $568 million in the first six months of 2026. In February 2026, the company’s board of directors approved an additional share repurchase authorization of up to $1 billion. ZBRA expects to repurchase another $150 million of shares in the second half of 2026, bringing total full-year repurchases to roughly $700 million.
What ZBRA’s Earnings Estimates Indicate
The Zacks Consensus Estimate for ZBRA’s 2026 earnings has been stable over the past 60 days. The consensus estimate for third-quarter 2026 earnings has also remained unchanged over the same time frame.
The Zacks Consensus Estimate for 2026 earnings is currently pegged at $21.14, suggesting year-over-year growth of 33.5%. Earnings are expected to register roughly 26.3% growth in the third quarter.
A Look at ZBRA’s Valuation
ZBRA has a forward 12-month price-to-earnings ratio of 20.22X, in line with the industry average. It is trading at a discount to Honeywell and at a premium to Avery Dennison. Zebra Technologies has a Value Score of C, while Honeywell and Avery Dennison have a Value Score of B each.
ZBRA’s P/E F12M Vs. Industry, HON and AVY
Final Thoughts: Buy ZBRA Shares
Zebra Technologies remains well-positioned for growth, supported by broad demand for mobile computing, printing, machine vision and RFID across key end markets. Acquisitions such as Elo Touch and Photoneo are expanding its addressable market and strengthening automation and AI capabilities. Strong free cash flow enables investments and substantial share repurchases, while bullish technical momentum and healthy earnings growth expectations reinforce the outlook. With a Zacks Rank #2 (Buy), ZBRA remains an attractive buy for investors seeking continued growth and long-term upside.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).