Zebra Technologies (ZBRA) has raised its outlook, telling investors it now expects Q2 2026 sales growth of 14% to 17% and full-year sales growth of 10% to 14%, citing acquisitions and foreign exchange effects.

The improved guidance comes after Zebra Technologies was added to the Russell 2500 Index and the Russell 2500 Value Benchmark, with the stock showing strong recent momentum through a 30 day share price return of 12.86% and a 90 day return of 18.99%. However, the 1 year total shareholder return is still down 19.99% and the 5 year total shareholder return is down 49.42%, indicating that long term holders have faced sizeable drawdowns even as shorter term sentiment has recently improved.

If you are looking beyond Zebra Technologies for ideas in automation and related themes, this could be a good moment to scan the market for 30 robotics and automation stocks

After Zebra Technologies' recent jump and upgraded outlook, the gap between its US$264.32 share price and a wide set of value markers stands out. Where does a reasonable fair value line actually sit in that spread?

Most Popular Narrative: 18.7% Undervalued

On the most followed narrative, Zebra Technologies screens as undervalued, with a fair value of $325.31 against the latest close of $264.32, and a 9.07% discount rate anchoring that view.

The accelerating shift toward automation, digital transformation, and real-time workflow optimization, driven by ongoing labor shortages, e-commerce expansion, and increased supply chain demands, continues to support demand for Zebra's portfolio (hardware, software, RFID, machine vision), supporting sustained revenue growth and long-term earnings visibility.

Read the complete narrative. Read the complete narrative.

Want to see what powers that valuation gap? The narrative leans on firmer revenue runways, higher margins, and a future earnings base that assumes consistent execution.

Result: Fair Value of $325.31 (UNDERVALUED)

However, the Zebra Technologies narrative still faces pressure points, particularly if a hardware-reliant revenue mix limits software and services growth or if tariff and trade shifts squeeze margins.

Next Steps

Given the mix of concern and optimism around Zebra Technologies, it makes sense to look under the hood yourself, weigh both sides, and see whether the 4 key rewards and 3 important warning signs lines up with your own view.

Looking for more investment ideas beyond Zebra Technologies?

Do not stop at Zebra Technologies alone. Use this moment to widen your watchlist with other focused ideas that could sharpen how you position your portfolio.

• Zero in on quality at a discount by checking companies that screen as 44 high quality undervalued stocks before the market fully prices them in.
• Strengthen your income stream by reviewing businesses in the 9 dividend fortresses that combine higher yields with consistency.
• Reduce unpleasant surprises by scanning companies in the 72 resilient stocks with low risk scores that pair resilient fundamentals with lower overall risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.