Case Study on Zebra Technologies’ Stock Performance in Relevance with Market Index and CAPM

Abstract

The study had been focusing to target case study on the Zebra Technologies’ stock performance in relevance with market index and CAPM. The company of Zebra Technologies had been recognized as the fast-growing company in the technology industry where the stock performance had been capturing the attention of the investors. With this, the motivation of the study had been drawn out to explore and understand the performance of the stock return on Zebra Technologies (ZBRA) against the market benchmark which is derived from the NASDAQ market index performance as well as using the CAPM estimation model to create the comparison against the expected return of the stock of ZBRA. The initial understanding driven from the previous study had create the assumptions on the performance of ZBRA stock to be closely related to the performance of the NASQAD market and the expected return from CAPM. The methodology of the quantitative study had proposed the comparative analysis to provide the significant baseline comparison against the three variables, ZBRA stock return, NASDAQ market return and the expected return from CAPM. The results and findings had shown the similar agreement based on the literature review with the ZBRA stock return sharing significant strong positive correlation against the NASDAQ market return and CAPM expected return. In addition, the stock return of ZBRA appear to be exceeding the market expectations with the achievement of average return against both NASDAQ market return and CAPM expected return. This had provided the suggestion to the investors as the positive encouragement to decide in investing in ZBRA stocks based on the quantitative analysis outcome of the study.