Zebra Technologies - ZBRA - close: 76.55 change: -0.53

Stop Loss: 74.75
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 489 thousand
Entry on December -- at $---.--
Listed on December 04, 2014
Time Frame: 8 to 12 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ZBRA is in the industrial goods sector. They specialize in barcode, receipt, kiosk, and RFID printers and supplies. The company's equipment is used by the vast majority of Fortune 500 companies. They recently purchased Motorola Solutions Enterprise business.

Today the company is focusing on the Internet of Things (IoT). ZBRA's CEO, Mr. Anders Gustafsson, said, "Over the last two years, there has been a growing need for organizations to obtain a full picture of their business operations. I believe that with these survey results, it is clear that enterprises in key industries globally are adopting Internet of Things solutions to arm themselves with the real-time data and intelligence to become smarter and more connected. At Zebra, we believe that IoT and visibility solutions can help businesses reach new levels of efficiency and deliver greater value for customers."

ZBRA has zero debt and has been consistently beating Wall Street's earnings estimates. Their latest report was November 4th. Analysts were looking for a profit of $0.87 a share on revenues of $292 million. ZBRA delivered $0.93 a share, which is a +22.9% increase from the same quarter a year ago. Revenues were up +15% to $303.3 million.

The company said its sales rose in all geographic regions and hit a record quarterly revenues. Sales in Asia were up +9%, in Latin America +11%, in North America +16%, and in Middle East and Africa sales were up +19%. ZBRA also reported that its gross margins improved from 48.8% in 2013 to 50.0% in the recent quarter. Gustafsson said, "Favorable business momentum is continuing into the fourth quarter."

The stock has spent almost a month consolidating sideways in the $70-75 zone. The last couple of days have seen a bullish breakout through key resistance. Traders were buying the dip today. If this rally continues we want to hop on board. The point & figure chart is bullish and forecasting a long-term target of $105.00.

Tonight we are suggesting a trigger to buy calls at $76.85.

Trigger @ $76.85

- Suggested Positions -

Buy the FEB $80 CALL (ZBRA150220C80) current ask $2.70

Option Format: symbol-year-month-day-call-strike

Intraday Chart:

Daily Chart: