New Trade for November 13th, 2020

Futures are green this morning for all the major indices after yesterday’s breather.  Covid cases are spiking across the country and several big cities are considering new restrictions in an attempt to slow the spread of the virus. There is no telling where we are headed from here, but for today at least it seems markets are attempting to close the week with some of the  strength from Monday and Tuesday.

If you would have invested $1,000 into Amazon ten years ago, your investment would have grown to nearly $20,000 by now.  AMZN is one of the most revered ticker symbols of current times. Today we are highlighting an alternative way to capitalize on Amazon’s explosive growth.  

Zebra Technologies Corporation (ZBRA) manufactures and sells marking, tracking and computer printing technologies.  The company produces thermal barcode label and receipt printers, RFID smart label printers,encoders,fixed & handheld readers, antennas, and card kiosk printers that are used for barcode labeling, personal identification and speciality printing principally in the manufacturing supply chain, retail, healthcare and government sectors.  

Zebra is an industry leader in RFID and barcode scanning & tracking solutions, with over 40% market share in handheld devices and over 50% share in Android inventory management devices.  The company is well positioned to benefit from secular tailwinds including ecommerce, warehouse automation and demand for logistics efficiency improvements.  As many workers in Amazon warehouses use Zebra’s scanners, ZBRA may be another way to capitalize on Amazon’s monumental growth.

ZBRA has a $18.5 billion market cap and a P/E ratio of 39.5.