Zebra Technologies (ZBRA) Flagged As Strong On High Volume

Trade-Ideas LLC identified Zebra Technologies (ZBRA) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Zebra Technologies

(

ZBRA

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Zebra Technologies as such a stock due to the following factors:

  • ZBRA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $46.7 million.
  • ZBRA has traded 75,234 shares today.
  • ZBRA is trading at 4.17 times the normal volume for the stock at this time of day.
  • ZBRA is trading at a new high 3.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on ZBRA:

Zebra Technologies Corporation designs, manufactures, sells, and supports a range of printers and supplies worldwide. ZBRA has a PE ratio of 43. Currently there are 8 analysts that rate Zebra Technologies a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Zebra Technologies has been 540,400 shares per day over the past 30 days. Zebra has a market cap of $3.9 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.35 and a short float of 5.6% with 4.18 days to cover. Shares are down 8.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Zebra Technologies as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • ZBRA's very impressive revenue growth greatly exceeded the industry average of 0.3%. Since the same quarter one year prior, revenues leaped by 202.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 387.47% to $96.35 million when compared to the same quarter last year. In addition, ZEBRA TECHNOLOGIES CP has also vastly surpassed the industry average cash flow growth rate of -6.96%.
  • 47.38% is the gross profit margin for ZEBRA TECHNOLOGIES CP which we consider to be strong. Regardless of ZBRA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ZBRA's net profit margin of -3.15% significantly underperformed when compared to the industry average.
  • The debt-to-equity ratio is very high at 3.33 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, ZBRA maintains a poor quick ratio of 1.00, which illustrates the inability to avoid short-term cash problems.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, ZEBRA TECHNOLOGIES CP's return on equity significantly trails that of both the industry average and the S&P 500.

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