Garmin GRMN is strengthening its Outdoor segment on the back of its expanding portfolio offerings.
Recently, Garmin expanded its eTrex series with the launch of a solar-powered handheld GPS device, eTrex Solar.
Notably, the solar-charging device can offer an unlimited battery life of up to 1,800 hours in Expedition mode without embedded solar charging, enabling users to stay on the trail longer.
Further, eTrex Solar provides customers with access to its Garmin Explore app, offering cloud backup for mapping and trip data review, smart notifications and real-time weather forecasts when connected to a smartphone device.
Additionally, the eTrex Solar, equipped with multi-band GPS, a digital compass and an IPX7 rating, provides seamless positional accuracy and heading accuracy in challenging environments.
Garmin is expected to gain solid traction among hikers, geocachers and adventure enthusiasts on the back of its latest move.
Garmin Ltd. Price and Consensus
The latest move positions the company well to solidify its presence in the global GPS tracking device market.
Per a Markets and Markets report, the global GPS tracking device market is expected to hit $5.7 billion in revenues by 2028, exhibiting a CAGR of 13.1% between 2023 and 2028.
A Global Market Insights report indicates the GPS tracking device market size to witness a CAGR of 12.5% during the forecast period of 2023-2032.
Strong prospects in the promising GPS tracking device market will likely aid the company in winning investors’ confidence in the days ahead.
Shares of GRMN have returned 30.1% in the year-to-date period, outperforming the industry’s rise of 20.6%.
Strengthening Outdoor Segment
This apart, Garmin introduced Descent Mk3 dive computers and transceivers with SubWave sonar technology, featuring a vibrant touchscreen AMOLED display, 200-meter dive-rated case and up to 66 hours of battery life.
Further, Garmin expanded its ECG App1 to its epix Pro series, fenix 7 Pro series, Venu 3 series, and tactix 7 – AMOLED Edition smartwatches, allowing users to record heart rhythms and check for atrial fibrillation.
Also, Garmin unveiled the MARQ Carbon collection, featuring three luxury tool watches made from 130 layers of Fused Carbon Fiber, each with an AMOLED touchscreen display.
All the above-mentioned endeavors are likely to have contributed to the Outdoor segment’s performance in the upcoming period.
The segment generated sales of $433.99 million in the third quarter of 2023, increasing 7% year over year.
Our model estimate for fourth-quarter 2023 Outdoor segment sales is pegged at $473.7 million, indicating growth of 4.9% from the prior-year quarter.
Strength in the Outdoor segment will aid Garmin’s overall financial performance as it contributes to the majority of its net sales.
Notably, the company raised its guidance for 2023 revenues from $5.05 billion to $5.15 billion.
Zacks Rank & Stocks to Consider
Currently, Garmin carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Badger Meter BMI, Arista Networks ANET and Salesforce CRM. While Badger Meter sports a Zacks Rank #1 (Strong Buy), Arista Networks and Salesforce carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Badger Meter have gained 34.5% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 20.39%.
Shares of Arista Networks have surged 77.5% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 19.77%.
Shares of Salesforce have gained 69.8% in the year-to-date period. CRM’s long-term earnings growth rate is currently projected at 22.54%.
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