For his "Executive Decision" segment of Mad Money Tuesday night, Jim Cramer sat down with Anders Gustafsson, CEO of Zebra Technologies (ZBRA) , the asset tracking company which just posted 15-cents-a-share earnings beat that has the stock higher.
Gustafsson said business is the most complex team sport there is and Zebra's performance stems from great execution by the entire team. That includes a new multiyear agreement with the U.S. Postal Service, the largest contract in the company's history.
When asked about China, Gustafsson explained that Zebra is working with their partners to set up redundant assembly facilities for all of their products. These lines will be operated by many of the same partners, so the quality and expertise will remain for all of Zebra's customers.
Turning to industry trends, Gustafsson said that health care remains the fastest-growing segment, driven largely by regulations for more accurate procedures and better outcomes. He said markets in Latin America and Europe continue to expand. Meanwhile, retail is also strong, as more companies move to an omnichannel strategy that requires better tracking of assets. We looked at the charts of ZBRA earlier this month and they were bullish, noting that, "ZBRA could break out to the upside at any moment. Buy a starter position now and when prices start to move up add the balance of what you want to buy. Risk a close below $185 and $238 is the first target." With our price target of $238 reached we need to look at the charts again.
In this daily bar chart of ZBRA, below, we can see that prices soared not long after our last update. Prices are above the rising 50-day moving average line and the rising 200-day line.
The daily On-Balance-Volume (OBV) line has turned up and is close to making a new high for the move up to confirm and support the price gains this month. Trading volume increased the past week or two to tell us that traders and investors are voting with their feet.
The Moving Average Convergence Divergence (MACD) oscillator has soared above the zero line for an outright go long signal.
In this weekly bar chart of ZBRA, below, we can see a bullish alignment of prices and indicators. Prices just made a new weekly high close. ZBRA is above the rising 40-week moving average line which has done a terrific job the past three years in defining the uptrend.
The weekly OBV line has been positive since March and the MACD oscillator has turned upwards in a fresh outright go long signal.
In this updated Point and Figure chart of ZBRA, below, we can see a new higher price target of $333 being projected.
Bottom line strategy: Continue to hold longs in ZBRA but raise sell stop protection to just below $225. $333 is our next major upside price target.