What happened

Shares of Zebra Technologies (NASDAQ:ZBRA) gained 22.2% in June, according to data from S&P Global Market Intelligence. The maker of data collection and processing tools, such as bar code scanners and radio-frequency identification tag readers, bounced back from a 19% drop in May, driven by generally improving conditions in Zebra's most important target markets.

So what

May's weakness was based on a combination of tense geopolitical trade relations and profit-taking after massive gains in recent months. Zebra recovered from that trough in June as investors got back to the usual business of simply driving share prices higher over time.

Warehouse worker scanning barcodes on one of many cardboard boxes.

Image source: Getty Images.

Now what

The company has seen operating profits rise by an average of 39% over the last three years, lifting Zebra's share price 335%. Even now, the stock trades at a relatively reasonable valuation of 16 times forward earnings or 18 times trailing free cash flows, leaving plenty of room for further gains.