Looking back on specialized technology stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Zebra (NASDAQ: ZBRA) and its peers.

Companies in this sector, especially if they invest wisely, could see demand tailwinds as the world moves towards more IoT (Internet of Things), automation, and analytics. Enterprises across most industries will balk at taking these journeys solo and will enlist companies with expertise and scale in these areas. However, headwinds could include rising competition from larger technology firms, as digitization lowers barriers to entry in the space. Additionally, companies in the space will likely face evolving regulatory scrutiny over data privacy, particularly for surveillance and security technologies. This could make companies have to continually pivot and invest.

The 8 specialized technology stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.2% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.7% since the latest earnings results.

Zebra (NASDAQ: ZBRA)

Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ: ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.

Zebra reported revenues of $1.32 billion, up 5.2% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

“Our strong third quarter results were driven by solid demand, lower-than-expected tariffs, operating expense leverage and continued excellent execution by our teams,” said Bill Burns, Chief Executive Officer of Zebra Technologies.

Zebra delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 19.1% since reporting and currently trades at $251.14.

Is now the time to buy Zebra? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Napco (NASDAQ: NSSC)

Protecting everything from schools to government facilities since 1969, Napco Security Technologies (NASDAQ: NSSC) manufactures electronic security devices, access control systems, and communication services for intrusion and fire alarm systems.

Napco reported revenues of $49.17 million, up 11.7% year on year, outperforming analysts’ expectations by 4.8%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 14.4% since reporting. It currently trades at $37.81.

Is now the time to buy Napco? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Cognex (NASDAQ: CGNX)

Founded in 1981 when computer vision was in its infancy, Cognex (NASDAQ: CGNX) develops machine vision systems and software that help manufacturers and logistics companies automate quality inspection and tracking of products.

Cognex reported revenues of $276.9 million, up 18% year on year, exceeding analysts’ expectations by 5.2%. It was a satisfactory quarter as it also posted an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ full-year EPS guidance estimates.

As expected, the stock is down 20.9% since the results and currently trades at $37.51.

Read our full analysis of Cognex’s results here.

Mirion (NYSE: MIR)

With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies (NYSE: MIR) provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.

Mirion reported revenues of $223.1 million, up 7.9% year on year. This result met analysts’ expectations. It was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.

The stock is flat since reporting and currently trades at $25.05.

Read our full, actionable report on Mirion here, it’s free for active Edge members.

PAR Technology (NYSE: PAR)

Originally founded in 1968 as a defense contractor for the U.S. government, PAR Technology (NYSE: PAR) provides cloud-based software, payment processing, and hardware solutions that help restaurants manage everything from point-of-sale to customer loyalty programs.

PAR Technology reported revenues of $119.2 million, up 23.2% year on year. This print beat analysts’ expectations by 5.8%. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

PAR Technology delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 3.9% since reporting and currently trades at $34.48.

Read our full, actionable report on PAR Technology here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.