Garmin Ltd. (GRMN - Free Report) is making every effort to bolster presence in the aviation industry on the back of its innovative technologies.
The company’s G1000NXi integrated flight deck upgrade received certification for use in the Prodigy Flight Deck equipped Embraer Phenom 300 business jet. This approval is a testament to the company’s focus on strengthening aviation portfolio.
Notably, G1000NXi in the Phenom 300 jets features Connext technology, which allows transfer of aviation databases to the flight deck from a mobile phone via Garmin Pilot app.
Further, the underlined integrated flight deck comes with an option of GWX 75 Doppler weather radar that offers four-times more color contouring with minimized power consumption compared to other radars.
Additionally, this flight deck features Surface Watch runway monitoring technology, visual approach guidance and HSI map.
Garmin is likely to gain on the abovementioned advanced features, which are expected to drive adoption of G1000 NXi upgrade programs.
Apart from the latest certification, the company’s Garmin Autoland system has recently received certification from Federal Aviation Administration (FAA) for use in Piper M600 jet via its G3000 integrated flight deck.
Notably, Autoland System takes complete control of the flight to land the airplane safely at the nearest runway in case of an emergency.Further, this flight technology automatically communicates with air traffic control (ATC).
We believe robust flight display and deck offerings by Garmin will continue to improve flight performance by reducing pilot’s workload. Moreover, these offerings are likely to bolster Garmin’s presence in the aviation industry.
Aviation Segment in Focus
Robust aviation portfolio has been playing a crucial role in shaping Garmin’s growth trajectory of.
Notably, the company’s aviation business remains a key growth driver courtesy of popularity of its solutions among both OEM and after-market customers.
Last year, gross margin from this segment came in at 75%. The company’s initiatives to expand portfolio and enhance existing product lines are therefore positive. Also, the segment contributed 19% to total revenues in 2019.
Hence, growing endeavors to strengthen the aviation segment will continue to drive Garmin’s top-line in the near term.
Zacks Rank & Stocks to Consider
Garmin currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks that can be considered in the broader technology sector are SiTime Corporation (SITM - Free Report) , KLA Corporation (KLAC - Free Report) and Carrier Global Corporation (CARR - Free Report) . All the three stocks 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 SiTime, KLA and Carrier is pegged at 15%, 12.03% and 8%, respectively.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
See the 5 high-tech stocks now>>