Zebra Technologies (ZBRA) Shows Signs Of Being Water-Logged And Getting Wetter

Trade-Ideas LLC identified Zebra Technologies (ZBRA) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Zebra Technologies

(

ZBRA

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $36.1 million.
  • ZBRA has traded 281,748 shares today.
  • ZBRA traded in a range 201.1% of the normal price range with a price range of $4.77.
  • ZBRA traded below its daily resistance level (quality: 6 days, meaning that the stock is crossing a resistance level set by the last 6 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on ZBRA:

Zebra Technologies Corporation designs, manufactures, sells, and supports a range of printers and supplies worldwide. 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 622,200 shares per day over the past 30 days. Zebra has a market cap of $4.2 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 5.5% with 5.95 days to cover. Shares are up 7.2% year-to-date as of the close of trading on Monday.

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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, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • ZBRA's very impressive revenue growth greatly exceeded the industry average of 1.3%. Since the same quarter one year prior, revenues leaped by 208.5%. 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.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • 46.23% 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 -8.57% significantly underperformed when compared to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 376.7% when compared to the same quarter one year ago, falling from $27.56 million to -$76.26 million.
  • Net operating cash flow has significantly decreased to -$16.08 million or 126.73% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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