NEW YORK (CNN/Money) - Bar codes have become a constant element on product labels, and for every bar code, there needs to be a scanner to read it. This makes Symbol Technologies the favorite stock of Matrix Asset Advisor's David Katz.

Symbol's scanners cover a wide array of uses, from checking out merchandise in Kmart stores, to tracking packages in UPS trucks, said Katz. "The industry is poised for continuation of growth. These products offer significant automation to businesses and will continue to become a significant part of the economy."

Katz offers General Electric's use of Symbol's (SBL: down $0.23 to $10.97, Research, Estimates) scanners as an example of future growth for the Holtsville, NY-based company.

"GE has saved millions through use of its online marketplace, and with every catalogue they send out, they include a Symbol scanner that can be hooked up to a computer," he said. "Customers can then scan the bar code of the product they want from the catalogue and GE receives the order."

Despite its lead position in the scanner technology market, the company hasn't escaped the web of accounting worries and shareholder lawsuits. Katz addresses the concerns and explains what makes Symbol Technologies his favorite stock.

Symbol's Telxon unit recently settled an investigation by the Securities and Exchange Commission into its accounting practices. Any concern about future accounting issues with Symbol?

In short, no, we don't think it's an issue. Telxon used to be a distant No.2 in the scanner market and then Symbol acquired them. It was widely known that Telxon pushed the envelope with aggressive accounting practices. No one had any illusions that their accounting was standard, but Symbol adopted those problems with the company. We see the fact that the SEC settled as a positive.

There was also a report in Newsday that Symbol was under investigation by the SEC. What happened was that Symbol received a letter from the SEC and responded, but the company never heard back from the agency. It wasn't an investigation.

Symbol is also the target of a class action lawsuit alleging the company issued false and misleading statements. Is there any merit to the suit?

Putting together class action lawsuits are what securities lawyers do when a stock falls, and like many stocks over the last couple of years, Symbol shares have lost some value. It also went down from $14 to $11 after the Newsday report, but in terms of a lawsuit, this has no merit or significance.

At the beginning of March, shares of Symbol climbed 42 percent in 5 trading days, including a 16 percent jump in one day, due to some insider buying and a management change. Is there any concern with volatility within the stock or in the company?

It is an absolute positive that management is buying the stock. They realize the stock has fallen and this is a good time to enter. The fact that they're stepping up and buying increases our conviction in the management and the company.

We liken volatility in the stock to good and bad cholesterol. Volatility works in its favor -- when it dropped from $14, it recovered just as quickly. Business growth will drive Symbol's stock price and when spending picks up, these guys will be in the sweet spot.

As far as the management change, the former chief executive took early retirement by the company's choice. We think he was doing a fine job, but as business spending slowed down, he probably was not being as aggressive as he needed to be. We see that change as a positive.

Symbol Technologies will release its first-quarter results April 18 and the company said it expects to earn 3 cents per share. Can they hit their numbers?

They should be able to. The surprises over the next 12-to-18 months will be on the upside.

Do you have a price target on Symbol shares?

We have an intermediate target of $18 and a longer-term target of the low $20's, but there is a decent chance they could surpass our targets. This is an industry leader, in a growth industry, at a value price.

Do you own a stake in Symbol Technologies?

Matrix owns a heap, but we do not have an investment banking relationship or consulting relationship with the company.