Friday, March 12, 2021

Buying Zebra Technologies (ZBRA) @ $489.30

 Zebra Technologies provides companies with intelligent solutions in automatic identification and data capture solutions. Basically the company providers barcode readers and tracking software to enable retail and e-commerce companies to efficiently ship and track products.

- Market share of over 40% in barcode printers, while the number 2 player has 12%.

- Ford Motors uses Zebra to locate auto parts, inventory and tools. The NFL uses Zebra to track player's and ball movement on the field and hospitals use it to track patient data and care flow.

- Zebra's opportunity is much bigger than hardware. The big money is in software and analytics.

- The Internet Of Things presents a huge opportunity as more and more devices are using RFID tags and connecting to the web.

- The company is very well managed with Return on Equity at 15%

- As e-commerce has made a huge leap forward over the pandemic, the increase in shipping activity will provide great tail winds for the company's growth.

- Q4 2020 net sales grew 9.7% to $1.31B

- Many companies have reduced their infrastructure spending due to the pandemic. The return to full scale operations should unleash a lot of pent up demand for Zebra's products in the next 12-24 months.

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