Bar code manufacturer, Zebra Technologies (NASDAQ:ZBRA) traded up +23.44% during the quarter. Broad-based strength, both geographically and by product end market, drove the top and bottom line earnings beat. ZBRA also made significant progress reducing its financial leverage to the top end of its target range at 2.5x. Given the strength of the company’s results, ZBRA raised the full year outlook for sales growth and free cash flow. We view ZBRA as an industry leader with a strong management team. We think the company is well-positioned to benefit from secular global demand for asset tracking solutions across several industries and believe ZBRA remains underpriced relative to its intrinsic value.
From John Rogers (Trades, Portfolio)' Ariel Fund third-quarter 2018 shareholder commentary.
