Why Wall Street Is Closely Watching Zebra Technologies Corporation (ZBRA)

Zebra Technologies Corporation (NASDAQ:ZBRA) is among the best hardware stocks to buy according to analysts. As of December 8, Zebra Technologies Corporation (NASDAQ:ZBRA) has a rating of ‘Buy’ or equivalent from 70% of the analysts covering the stock. With a median price target of $355, the stock has about 35% upside from the current price.

On December 5, Piyush Avasthy, an analyst at Citi, reaffirmed the ‘Hold’ rating on Zebra Technologies Corporation (NASDAQ:ZBRA), while setting a price target of $311, which suggests a potential upside of nearly 18%.

During the company’s presentation at the Stephens Annual Investment Conference on November 18, management had highlighted strategic vision in this volatile macroeconomic environment. The conference, featuring CFO Nathan Winters, covered growth opportunities and regional pressures.

With a focus on digitalization and automation of frontline operations, Zebra Technologies Corporation (NASDAQ:ZBRA) remains well-positioned in North America and Asia-Pacific, but lags in Europe. Amid current market volatility, the company aims for 6% organic growth and 17% EPS growth for the year. The core initiatives the company has adopted include share buybacks, the ELO acquisition, and the acceleration of RFID and machine vision technologies.

As stated by the CFO,

“We’ve deployed $300 million of share buyback through the year and committed to another $500 million over the next 12 months. I think adding the ELO acquisition gives us a scaled $400 million of revenue that’s accretive on day one. We feel good about the execution in the year.”

Zebra Technologies Corporation (NASDAQ:ZBRA) is an Illinois-based enterprise asset intelligence solutions company operating through two segments: Asset Intelligence & Tracking, and Enterprise Visibility & Mobility. Founded in 1969, the company serves the automatic identification and data capture solutions industry.

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Disclosure: None.