Reasons Why Zebra Technologies Stock Should Be in Your Portfolio

Zebra Technologies Corporation ZBRA stands to benefit from strength across its businesses, focus on operational excellence and acquired assets. The company remains focused on investing in growth opportunities and strengthening its long-term market position.

ZBRA, which has a market capitalization of $16.3 billion, currently carries a Zacks Rank #2 (Buy). Let’s delve into the factors that have been aiding the firm for a while now.

Business Strength: The company has been witnessing growth across the Connected Frontline segment. Higher sales of mobile computing solutions are driving the 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, the segment’s sales increased 13.5% (up 11.4% on an organic basis) on a year-over-year basis.

Driven by solid demand for its products, the company expects third-quarter 2026 net sales to increase 17-20% from the prior-year level. The company expects its 2026 revenues to grow 14-16% from the year-ago level.

Acquisition Benefits: The company intends to strengthen and expand its businesses through acquisitions. 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, expanded its reach across retail, healthcare, industrial and hospitality markets.

Price Performance of ZBRA Stock

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In the past six months, the company’s shares have surged 52.5% compared with the industry’s 56.8% growth.

Shareholder-Friendly Policies: 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.

Also, 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 more than $1 billion, up from its prior expectation of at least $900 million. This cash generation supports continued investment, debt flexibility and shareholder returns.

Earnings Estimates: The Zacks Consensus Estimate for ZBRA’s 2026 earnings is pegged at $20.31 per share, indicating an increase of 28.2% on a year-over-year basis. The consensus estimate for 2027 earnings is pegged at $21.75 per share, indicating an increase of 7.1% from the previous year.

Other Stocks to Consider

Some other top-ranked stocks from the same space are discussed below.

NAPCO Security Technologies NSSC presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NAPCO Security had an earnings surprise of 22% in the last reported quarter. The consensus estimate for NSSC’s fiscal 2027 (ending June 2027) earnings has increased 0.6% in the past 60 days.

Enersys ENS currently carries a Zacks Rank of 2. Enersys’ earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 11.5%. In the past 60 days, the Zacks Consensus Estimate for Enersys’ fiscal 2027 (ending March 2027) earnings has increased 10.8%. 

RBC Bearings Incorporated RBC presently carries a Zacks Rank of 2. RBC Bearings has a trailing four-quarter average earnings surprise of 8.7%. The Zacks Consensus Estimate for RBC’s fiscal 2027 (ending March 2027) earnings has increased 4.9% over the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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