Zebra Technologies stock (NASDAQ
NDAQ
: ZBRA), best known for its automation and data capture solutions, currently trades at $254 per share, nearly 50% below the level seen in March 2021, and it may take a while for the stock to rebound. ZBRA stock was trading at around $294 in early June 2022, just before the Fed started increasing rates, and is now 20% below that level, compared to 16% gains for the S&P 500 during this period. This underperformance of ZBRA can be attributed to falling demand for its products, resulting in lower sales in recent quarters.
Interestingly, ZBRA stock has had a Sharpe Ratio of 0.5 since early 2017, slightly lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
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