Garmin
’s
GRMN
division Garmin International recently introduced a free software update to enhance navigation capabilities of Edge 530, Edge 830, Edge 1030 and Edge 1030 Plus GPS cycling computers. These updates are expected to provide better experience to cyclists.
Notably, cyclists can update Edge by using Garmin Express or a Wi-Fi network to get the latest routing data. The update will help cyclists and riders to get clean and high contrast maps for bike-friendly and mountain routes. Also, the maps include a Trendline heatmap based on several miles of uploaded ride data showing relevant places for riding.
Moreover, Garmin recently introduced the Rally series of power meters to help cyclists improve their performance and achieve training goals.
The latest launches are expected to expand Garmin’s reach to cyclists, thereby boosting the fitness segment.
Growing Fitness Segment Fueling Competition
Garmin is making strong efforts to boost prospects of the fitness segment. Through innovative products, the company is helping runners, cyclists, swimmers and athletes stay active and enhance their performance.
Markedly, Garmin’s fitness segment generated 29% of total net sales in first-quarter 2021. Revenues from the segment surged 38% year over year due to increased demand for cycling and advanced wearable products.
It also introduced software updates for Forerunner 245, Forerunner 245 Music, Forerunner 745 and Forerunner 945 GPS running smartwatches.
Moreover, early this month, Garmin unveiled a premium GPS running and triathlon smartwatch, Forerunner 945 LTE, with connectivity to help athletes stay connected to their family and friends during training. The same day (Global Running Day), Garmin also launched Forerunner 55, a GPS smartwatch, to encourage people to have a healthy lifestyle. The smartwatch tracks runners’ stats and helps them achieve their fitness goals.
The fitness market is growing in recent times due to increasing awareness for health and wellness products, thereby improving lifestyle. According to the American College of Sports Medicine’s Worldwide Survey of Fitness Trends, the expected 2021 trends are online exercise, wearable technologies and bodyweight training.
Garmin’s latest products and software updates are expected to boost its competitive prowess in the fitness market against the likes of
Alphabet
GOOGL
,
Nike
NKE
, Bryton, Polar Electro Oy, Sigma Sports, Suunto Oy and Timex Corp.
Garmin’s Portfolio Strength
Garmin’s efforts to expand the product portfolio are expected to boost prospects of its other segments including automotive, marine, outdoor and aviation.
Garmin, earlier this month, unveiled an all-new 2021 dash cam series with voice controlling features, automatic video storage and Live View monitoring options to help drivers in recording any incident that occurs in front of the vehicle.
In addition, the company launched MS-RA60 marine stereo that provides high-quality onboard entertainment to boaters at an affordable price.
Garmin also introduced Descent Mk2S, a regular wear smartwatch with numerous underwater diving features and additional options to track users’ daily lifestyle.
Moreover, the company launched GWX 8000 StormOptix weather radar to offer an extensive weather threat analysis and simplify operations for the pilot.
Zacks Rank & Key Pick
Currently, Garmin carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is
KLA Corporation
KLAC
, which carries 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 KLA Corp. is currently projected at 14.03%.
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