Zebra Technologies combines a strong earnings beat record and attractive valuation at 11.6x forward earnings with exceptional free cash flow conversion, but a confirmed death-cross technical breakdown with a -4.7% monthly moving average slope and elevated short interest create meaningful near-term downside risk.
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
Zebra has beaten earnings estimates in 3 of the last 4 quarters with an average surprise of 5.9%, and the stock trades at a forward P/E of 11.6x with a PEG ratio of 0.51 — indicating that earnings growth is not fully reflected in the current price. Earnings | Earnings beat rate remains above 75% over the next 4 quarters, and the stock re-rates to a forward P/E above 15x as the technical setup improves. | →Stable |
| CounterA low PEG of 0.51 may reflect the market pricing in slowing revenue growth of 6.1%; the discount to intrinsic value may persist if customers delay capital spending on enterprise hardware. | ||
Zebra's 200-day moving average is declining at -4.7% per 30 days with a confirmed death-cross pattern and RSI at 43 — the technical structure signals sustained institutional selling despite the improving on-balance volume indicator. Momentum breakdown | The 200-day moving average slope returns to flat or positive within 6 months, and price closes above the 200-day average for at least 10 consecutive trading days. | →Stable |
| CounterA -4.7% monthly MA slope is a meaningful rate of decline; the improving on-balance volume could be a short-term phenomenon that reverses if the broader technology sector weakens. | ||
Zebra converts 134% of net income into free cash flow with a Piotroski F-Score of 7/9, indicating that operating cash generation substantially exceeds reported earnings — a structural quality advantage in a capital-light enterprise technology model. Quality breakdown | Free cash flow conversion remains above 100% of net income for the next 4 quarters, supporting continued balance sheet strength. | →Stable |
| CounterElevated free cash flow relative to net income may reflect deferred tax benefits or working capital tailwinds that normalize over time, particularly as enterprise customers optimize inventory levels. | ||
Zebra has beaten earnings estimates in 3 of the last 4 quarters with an average surprise of 5.9%, and the stock trades at a forward P/E of 11.6x with a PEG ratio of 0.51 — indicating that earnings growth is not fully reflected in the current price.
→Stable- Expectation
- Earnings beat rate remains above 75% over the next 4 quarters, and the stock re-rates to a forward P/E above 15x as the technical setup improves.
CounterA low PEG of 0.51 may reflect the market pricing in slowing revenue growth of 6.1%; the discount to intrinsic value may persist if customers delay capital spending on enterprise hardware.
Zebra's 200-day moving average is declining at -4.7% per 30 days with a confirmed death-cross pattern and RSI at 43 — the technical structure signals sustained institutional selling despite the improving on-balance volume indicator.
→Stable- Expectation
- The 200-day moving average slope returns to flat or positive within 6 months, and price closes above the 200-day average for at least 10 consecutive trading days.
CounterA -4.7% monthly MA slope is a meaningful rate of decline; the improving on-balance volume could be a short-term phenomenon that reverses if the broader technology sector weakens.
Zebra converts 134% of net income into free cash flow with a Piotroski F-Score of 7/9, indicating that operating cash generation substantially exceeds reported earnings — a structural quality advantage in a capital-light enterprise technology model.
→Stable- Expectation
- Free cash flow conversion remains above 100% of net income for the next 4 quarters, supporting continued balance sheet strength.
CounterElevated free cash flow relative to net income may reflect deferred tax benefits or working capital tailwinds that normalize over time, particularly as enterprise customers optimize inventory levels.
▸ Show 1 more pillar▾ Show fewer
Short interest of 10% combined with a put-to-call ratio of 1.56 and implied volatility of 69% reflects material bearish positioning, suggesting institutional investors have specific concerns about the near-term business trajectory.
→Stable- Expectation
- Short interest declines below 6% within 9 months, and put-to-call ratio falls below 1.0 as technical conditions improve.
CounterShort interest at 10% is above typical levels for enterprise technology companies; if the bear case on enterprise spending materializes, these positions could amplify downside pressure through forced covering.
Zebra Technologies Corporation (ZBRA) Stock Analysis
Momentum Cont setup
Technology · Communication Equipment
Hold if already holding. Not a fresh buy at $251.53, but acceptable to hold if already in. Reason: mixed signals — some dimensions strong, others weak.
Zebra Technologies designs, manufactures and sells AIDC products—mobile computers, barcode scanners, RFID readers, thermal printers and machine vision systems—plus related services and software to retail, manufacturing, healthcare and logistics customers in 179 countries through... Read more
Hold if already holding. Not a fresh buy at $251.53, but acceptable to hold if already in. Reason: mixed signals — some dimensions strong, others weak. Chart setup: Trend continuation, RSI 60, MACD bullish. Maintain position. Not compelling to add more. Score 5.8/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, news boost analyst cluster(5), earnings proximity 39d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-06-26Recent Developments — Zebra Technologies Corporation
Latest news
- NEWS Zebra Technologies Corp (ZBRA) Institutional Confidence - TradingKey — TradingKey neutral
- NEWS Zebra Technologies Corp (ZBRA) Dividends & Stock Splits: Historical Payouts and Event Timeline - TradingKey — TradingKey neutral
- NEWS Assessing Zebra Technologies (ZBRA) Valuation After Raised Guidance And Q1 Earnings Beat - Yahoo Finance — Yahoo Finance positive
- NEWS Assessing Zebra Technologies (ZBRA) Valuation After Raised Guidance And Q1 Earnings Beat - Yahoo Finance Singapore — Yahoo Finance Singapore positive
- NEWS Truist raises Zebra Technologies stock price target to $267 on guidance - Investing.com — Investing.com positive
Generated 2026-06-26T22:12:41Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerCustomer A29%10-K Item 1: 'three customers, who are distributors of the Company's offerings, that individually accounted for more than 10% of our Net sales ... Customer A| 29 | %'
- LOWCustomerCustomer B15%10-K Item 1: 'three customers, who are distributors of the Company's offerings, that individually accounted for more than 10% of our Net sales ... Customer B| 15 | %'
- LOWCustomerCustomer C15%10-K Item 1: 'three customers, who are distributors of the Company's offerings, that individually accounted for more than 10% of our Net sales ... Customer C| 15 | %'
Material Events(8-K, last 90d)
- 2026-05-26Item 5.02LOWAt the 2026 Annual Meeting held May 19, 2026, Zebra Technologies stockholders approved the 2026 Long-Term Incentive Plan (2026 LTIP). Routine compensatory arrangement approval; no officer departure or board election disclosed in available body text.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $251.53, but acceptable to hold if already in. Reason: mixed signals — some dimensions strong, others weak. Chart setup: Trend continuation, RSI 60, MACD bullish. Maintain position. Not compelling to add more. Target $296.05 (+17.7%), stop $233.92 (−7.5%), A.R:R 1.2:1. Score 5.8/10, moderate confidence.
Take-profit target: $296.05 (+17.7% upside). Target $296.05 (+17.7%), stop $233.92 (−7.5%), A.R:R 1.2:1. Stop-loss: $233.92.
Zebra Technologies Corporation trades at a P/E of 29.4 (forward 11.8). TrendMatrix value score: 7.5/10. Verdict: Hold.
26 analysts cover ZBRA with a consensus score of 4.0/5. Average price target: $329.
What does Zebra Technologies Corporation do?Zebra Technologies designs, manufactures and sells AIDC products—mobile computers, barcode scanners, RFID readers,...
Zebra Technologies designs, manufactures and sells AIDC products—mobile computers, barcode scanners, RFID readers, thermal printers and machine vision systems—plus related services and software to retail, manufacturing, healthcare and logistics customers in 179 countries through more than 10,000 channel partners. Three distributor customers each exceeded 10% of net sales in 2025 (Customer A at 29%, B and C each at 15%), employing approximately 10,700 people across 129 facilities.