Core Viewpoint - Zebra Technologies (ZBRA) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Recent Performance and Outlook - Zebra's earnings estimates have been on the rise, with a 7.6% increase in the Zacks Consensus Estimate over the past three months for the fiscal year ending December 2025, projected at $15.67 per share [8]. - The upgrade reflects an improvement in Zebra's underlying business, which is expected to drive the stock price higher as investor sentiment becomes more positive [5][10]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Core Viewpoint - Zebra Technologies (ZBRA) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimates - Analysts are increasingly optimistic about Zebra's earnings prospects, particularly for its products related to bar codes, plastic cards, and RFID tags, which is reflected in higher stock price estimates [2]. - The Zacks Rank system indicates a strong correlation between earnings estimate revisions and stock price movements, with Zacks 1 Ranked stocks averaging a +25% annual return since 2008 [3]. Current Quarter Estimates - For the current quarter, Zebra is expected to earn $3.75 per share, representing a year-over-year increase of +7.5% [5]. - In the last 30 days, three estimates have been revised upward with no negative revisions, leading to a 15.96% increase in the Zacks Consensus Estimate [5]. Current Year Estimates - The expected earnings for the full year are $15.39 per share, reflecting a +13.8% change from the previous year [6]. - Over the past month, four estimates have been raised with no negative revisions, resulting in a 5.68% increase in the consensus estimate [6][7]. Zacks Rank - Zebra currently holds a Zacks Rank 2 (Buy) due to favorable estimate revisions, which is a reliable indicator for investors [8]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have been shown to significantly outperform the S&P 500 [8]. Market Performance - Zebra's stock has gained 5.7% over the past four weeks, driven by solid estimate revisions, indicating strong earnings growth prospects [9].