Trimble Inc. TRMB has intensified its focus on map technologies by creating a separate division comprised entirely of mapping solutions.
The new division called Trimble MAPS (Maps and Applications for Professional Solutions) offers global map-centric technology.
The move is aimed at aiding commercial vehicles with navigation solutions, innovative routing, visualization and scheduling.
Notably, Trimble's two businesses namely - ALK Technologies and TMW Appian Final Mile -were integrated to form this division.
Trimble MAPS is the amalgamation of ALK Technologies' industry standard mileage, mapping, routing and navigation and TMW Appian Final Mile's fleet routing, scheduling and optimization solutions.
With the aid of the new unit, the company will be able to transform the commercial transportation world by catering to operational and safety requirements which traditional mapping applications fail to do. Benefits from the Move
With the latest move, Trimble becomes an established global provider of routing, scheduling, visualization and navigation solutions for commercial use.
This will aid the company in gaining momentum in the growing digital map space which as per a report from Transparency Market Research, is expected to reach $306.15 billion by 2026 at a CAGR of 16.2% between 2018 and 2026.
Additionally, the new division will aid Trimble's performance in the agriculture, construction, forestry and other end markets where it has been offering map intelligence technologies for several years. In fact, these form an integral part of its business.
Consequently, the move is likely to strengthen the company's market position as well as drive business growth.
Trimble Inc. Revenue (TTM)
Trimble Inc. Revenue (TTM) | Trimble Inc. Quote
Strengthening Product Offerings
Trimble's portfolio strength remains its key growth driver. The new division of the company is in sync with its strong focus toward strengthening product offerings.
Trimble MAPS' integrated platform will enable the companies to develop end-to-end transportation solutions which will help them in achieving operational efficiency and delivering advanced customer service.
Apart from this, the company recently acquired Veltec, a fleet management provider, expanding its fleet safety and efficiency solutions portfolio. The buyout has enhanced transportation solutions offerings and global footprint.
We believe an expanding transportation solutions portfolio will expand Trimble's reach into transportation industry.
Zacks Rank & Stocks to Consider
Currently, Trimble carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Castlight Health CSLT , Fitbit FIT and AMETEK AME . All the three carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rate for Castlight Health, Fitbit and AMETEK is pegged at 22.5%, 12.31% and 9.58 respectively.
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