{"id":64122,"date":"2023-09-22T08:47:38","date_gmt":"2023-09-22T12:47:38","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/will-zebra-technologies-stock-recover-to-its-pre-inflation-shock-highs-of-600\/"},"modified":"2023-09-22T08:47:41","modified_gmt":"2023-09-22T12:47:41","slug":"will-zebra-technologies-stock-recover-to-its-pre-inflation-shock-highs-of-600","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=64122","title":{"rendered":"Will Zebra Technologies Stock Recover To Its Pre-Inflation Shock Highs Of $600?"},"content":{"rendered":"
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Zebra Technologies stock<\/strong> (NASDAQ
\n NDAQ
\n <\/fbs-ticker>: ZBRA), best known for its automation and data capture solutions, currently trades at $254 per share, nearly 50% below the level seen in March 2021, and it may take a while for the stock to rebound. ZBRA stock was trading at around $294 in early June 2022, just before the Fed started increasing rates, and is now 20% below that level, compared to 16% gains for the S&P 500 during this period. This underperformance of ZBRA can be attributed to falling demand for its products, resulting in lower sales in recent quarters.<\/p>\n

Interestingly, ZBRA stock has had a Sharpe Ratio of 0.5<\/strong> since early 2017, slightly lower than 0.6<\/strong> for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3<\/strong> for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.<\/p>\n

Returning to the pre-inflation shock high of over $615 (seen in Dec 2021) means that ZBRA stock will have to gain more than 150% from here, and we don\u2019t think this will materialize anytime soon. Although ZBRA stock currently trades at 2.3x revenues compared to its last five-year average of 3.8x, a decline in P\/S multiple is justified given the falling sales. Note that Zebra\u2019s 2023 sales are projected at $4.6 billion, reflecting over 20% fall y-o-y. Our Zebra Technologies Valuation Ratios Comparison<\/strong> dashboard has more details.<\/p>\n

Our detailed analysis of Zebra Technologies\u2019 upside post-inflation shock<\/strong> captures trends in the company\u2019s stock during the turbulent market conditions seen over 2022. It compares these trends to the stock\u2019s performance during the 2008 recession.<\/p>\n

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2022 Inflation Shock<\/strong><\/p>\n

Timeline of Inflation Shock So Far:<\/p>\n