• Zebra Technologies recently announced that automotive manufacturers using Sentinel’s Poka Yoke inspection solution, powered by Zebra’s AltiZ Series High-Fidelity 3D Profile Sensor and Sentinel’s Vision Core AI software, have reduced defect rates and shortened machine commissioning times from three months to three weeks.

• The collaboration replaces hundreds of traditional mechanical sensors with a flexible vision-based system, highlighting growing adoption of Zebra’s automation technology in complex automotive production lines.

• We’ll now explore how this AI-enabled Poka Yoke inspection capability could shape Zebra Technologies’ investment narrative around industrial automation and efficiency.

Rare earth metals are the new gold rush. Find out which 33 stocks are leading the charge.

For Zebra, the big-picture belief is that it can turn its position in data capture, mobile computing and software into a broader role in automating complex workflows across logistics, retail and manufacturing. The Sentinel Poka Yoke announcement fits cleanly into that story, showing how Zebra’s 3D sensors and AI software can replace hundreds of mechanical sensors and materially cut commissioning times. In the near term, though, this looks more like a proof point than a needle-mover for revenue, so the main catalysts still sit around upcoming earnings, order trends and how management talks about automation demand. The risk side has not gone away: revenue growth is still modest, returns on equity are only in the mid-teens, and the share price has lagged, which leaves less room for disappointment if these automation wins do not scale as quickly as hoped.

However, investors also need to weigh a key risk tied to Zebra’s slower revenue growth expectations. Despite retreating, Zebra Technologies’ shares might still be trading 30% above their fair value. Discover the potential downside here.

Five Simply Wall St Community fair value estimates span roughly US$244 to US$421 per share, underlining how far apart individual views can be. Set against this spread, the recent AI-enabled automation wins and still-muted revenue growth expectations give you a sense of why opinions on Zebra’s future performance diverge so widely.

Explore 5 other fair value estimates on Zebra Technologies – why the stock might be worth as much as 76% more than the current price!

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.