Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth

23. Zebra Technologies Corporation (NASDAQ:ZBRA)

Growth Investment Ratio: 92%

Number of Hedge Fund Holders: 35

Zebra Technologies Corporation (NASDAQ:ZBRA) is a warehousing and logistics technology products provider. The firm’s shares are up 49% year to date despite the fact that its target industry typically struggles in a weak economy constrained by high interest rates. The stock is up because Zebra Technologies Corporation (NASDAQ:ZBRA) is a key player in the warehouse robotics industry. Apart from AI, industry watchers are quite optimistic about the future of robotics particularly due to their ability to perform repetitive and dangerous tasks. Robotics’ exposure to warehousing and logistics serves Zebra Technologies Corporation (NASDAQ:ZBRA) since it is one of the key players in its industry. The firms’ key business divisions, which cater to asset tracking and other operations through barcodes can benefit from dipping inflation if its customers decide to refresh their product inventories. This optimism was also present in Zebra Technologies Corporation (NASDAQ:ZBRA)’s third-quarter earnings during which it guided Q4 EPS at a $3.90 midpoint to beat analyst estimates of $3.54.

Zebra Technologies Corporation (NASDAQ:ZBRA)’s management commented on its automation and AI plans during the Q3 2024 earnings call. Here is what they said:

“We remained well-positioned to benefit from secular trends to digitize and automate workflows with their comprehensive portfolio of innovative solutions including purpose-built hardware, software, and services. We empower frontline workers to execute tasks more effectively by navigating constant change in real time to advance capabilities including automation, prescriptive analytics, machine learning and artificial intelligence. Zebra continues to demonstrate market leadership through innovation. We have consistently reinvested approximately 10% of our revenues into research and development to advance our vibrant core and bring new innovative solutions to market. At recent customer events we hosted in North America and EMEA, we unveiled solutions that underscore our commitment to innovation.

These include the latest version of our work cloud software utilizing advanced AI and machine learning and new rugged tablets for demanding environments. We also highlighted a Zebra kiosk solution offering self-checkout including tap-to-pay capabilities, which enhance the customer experience and enables frontline associates to focus on higher value tasks. This launch enables us to expand Zebra’s addressable market with near adjacent technology that leverages our core software platform. Additionally, we are developing a generative AI mobile computing solution designed to assist frontline workers with sales, merchandising, and operating procedures, which we will feature at the National Retail Federation Trade Show in January.”