Company Overview - Zebra Technologies Corporation (ZBRA) specializes in enterprise asset intelligence and automatic identification and data capture solutions, offering a range of products including barcode scanners, RFID readers, mobile computers, and specialty printers [1] - The company is headquartered in Lincolnshire, Illinois, and has a market capitalization of approximately $13.6 billion [1][2] Stock Performance - ZBRA is currently trading 37.3% below its 52-week high of $427.76, reached on January 22 [3] - The stock has declined 14.2% over the past three months, underperforming the Technology Select Sector SPDR Fund (XLK), which returned 6.1% in the same period [3] - Year-to-date, ZBRA is down 30.5% and has decreased 34.2% over the past 52 weeks, while the XLK has gained 23.6% in 2025 and 20.7% over the past year [4] Market Challenges - The decline in ZBRA's stock is attributed to macroeconomic headwinds, including U.S. import tariffs, potential supply chain disruptions, and broader market volatility [5] - The company has faced uneven geographic performance, with weaknesses noted in the EMEA market and a softer manufacturing environment, which have offset strong performance in North America and Asia-Pacific [6] Analyst Ratings - ZBRA has a consensus rating of "Moderate Buy" from 17 analysts, with a mean price target of $360.50, indicating a potential upside of 34.3% [7]

Core Insights - Zebra Technologies Corporation is a global leader in enterprise asset intelligence solutions, offering products like barcode scanners, mobile computers, and RFID solutions to enhance operational efficiency [1] - Zebra competes with companies such as Honeywell and Datalogic in the automatic identification and data capture (AIDC) industry [1] Financial Performance - Zebra's Return on Invested Capital (ROIC) is 9.20%, while its Weighted Average Cost of Capital (WACC) is 10.94%, resulting in a ROIC to WACC ratio of 0.84, indicating that the company is not generating returns above its cost of capital [2][6] - Paycom Software, Inc. has a ROIC of 18.31% and a WACC of 7.59%, leading to a ROIC to WACC ratio of 2.41, showcasing effective capital utilization [3][6] - IDEXX Laboratories, Inc. leads the peer group with a ROIC of 46.11% and a WACC of 11.04%, achieving a ROIC to WACC ratio of 4.18, highlighting its exceptional ability to generate returns above its cost of capital [4][6] - HubSpot, Inc. has a ROIC of 4.27% and a WACC of 10.96%, resulting in a ROIC to WACC ratio of 0.39, indicating that it, like Zebra, is not covering its cost of capital [5][6]

Company Overview - Zebra Technologies Corporation (ZBRA) has a market cap of $15.6 billion and is a leader in Enterprise Asset Intelligence (EAI) solutions within the Automatic Identification and Data Capture (AIDC) industry, offering a range of products and services including mobile computers, barcode scanners, RFID systems, specialty printers, software, and cloud-based solutions [1] Upcoming Earnings - Zebra Technologies is set to announce its fiscal Q3 2025 results on Tuesday, Oct. 28, with analysts expecting an EPS of $3.16, consistent with the same quarter last year [2] Financial Projections - For fiscal 2025, analysts project an EPS of $13.04, reflecting a 10.1% increase from $11.84 in fiscal 2024, with further growth expected to 15.8% year-over-year to $15.10 in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, Zebra Technologies shares have decreased by 20.7%, underperforming the S&P 500 Index's gain of 16.2% and the Technology Select Sector SPDR Fund's increase of 25.5% [4] Recent Earnings Report - In Q2 2025, Zebra Technologies reported an adjusted EPS of $3.61, exceeding estimates and showing a year-over-year increase of 13.5%. Revenue reached $1.3 billion, surpassing forecasts with a growth of 6.2%. However, the company faced negative investor reactions due to weaker performance in the Asset Intelligence & Tracking segment, where revenues of $418 million fell short of consensus, and margin pressures from a 7.8% rise in cost of sales to $677 million [5] Analyst Ratings - The consensus view on ZBRA stock is moderately optimistic, with a "Moderate Buy" rating. Out of 17 analysts, 11 recommend a "Strong Buy," one a "Moderate Buy," and five a "Hold," indicating a more bullish outlook compared to three months ago when only nine analysts suggested a "Strong Buy" [6]

Core Viewpoint - Honeywell is evaluating strategic alternatives for its Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions (WWS) businesses to simplify its portfolio and accelerate value creation ahead of its planned separation into three independent companies by the second half of 2026 [1][4]. Group 1: Business Overview - PSS is projected to generate over $1 billion in revenue for 2024, providing mobile computers, barcode scanners, and printing solutions for the warehouse and logistics market [2]. - WWS is expected to generate nearly $1 billion in revenue in 2024, offering supply chain and warehouse automation solutions, including automated sortation systems, palletizers, conveyors, and robotics [2][3]. - Both PSS and WWS are recognized as leaders in their respective markets, with strong customer relationships and innovative technologies aimed at enhancing efficiency and productivity [3]. Group 2: Leadership and Strategic Direction - Jim Masso has been appointed as President and CEO of Honeywell Process Automation, effective July 14, 2025, bringing 20 years of experience in energy services and engineering [3][4]. - The evaluation of strategic alternatives for PSS and WWS will occur alongside ongoing portfolio workstreams, without affecting the timelines for the separations of other Honeywell businesses [4][7]. Group 3: Recent Strategic Actions - Since June 2023, Honeywell has undertaken several strategic actions, including $14 billion in acquisitions to drive organic growth and simplify its portfolio [5]. - The company has also sold its Personal Protective Equipment business to Protective Industrial Products in May 2025 [5]. Group 4: Financial Advisory - Honeywell has engaged Centerview Partners as its financial advisor to assist in assessing strategic alternatives for its PSS and WWS businesses [6].

Core Viewpoint - Zebra Technologies is strategically positioned to manage incoming tariff expenses due to lessons learned from the COVID-19 pandemic and subsequent supply chain challenges, leading to strong financial performance in the first quarter of 2024 [1][2]. Financial Performance - In the first quarter, Zebra reported an 11% year-over-year increase in revenues and a 42% rise in earnings, surpassing Wall Street's consensus estimates [1]. - The company anticipates direct tariff costs of approximately $30 million in Q2 2025 and $70 million for the entire fiscal year [4]. - Tariff expenses are expected to impact adjusted EBITDA, which was $292 million in Q2 and $1.05 billion for fiscal year 2024, representing roughly 10% of adjusted EBITDA profits in the next quarter and less than 7% for the full year [5]. Supply Chain Management - Zebra has diversified its supply chain, reducing shipments from China to the U.S. from 85% to an expected 30% by the end of Q2, enhancing supply chain resiliency [8]. - While most manufacturing can be relocated, some key components are still sourced from China, indicating that tariff costs will not be entirely avoidable [9][10]. Market Outlook - The demand for data-tracking services and supply chain analytics is expected to drive revenue growth and margin expansion for Zebra [11]. - Despite a 34% decline in stock price over the last three months, trading at 13 times free cash flows, the market's reaction may be overly pessimistic given Zebra's anticipated robust sales growth and manageable tariff impact [12]. - Investing in Zebra is seen as a strategic opportunity for long-term growth in data-driven sectors such as shipping, manufacturing, and retail [13].