Garmin ( GRMN Quick Quote GRMN - Free Report) has added new devices to the Tread series — Tread XL Overland Edition, Tread Overland Edition and Tread SxS Edition.
The new Tread products offer user-friendly touchscreen 10-inch and 8-inch displays with advanced navigation features for exploring unpaved roads. The devices also feature OpenStreetMap and U.S. Forest ServiceMotor Vehicle Use Maps to discover new adventure roads.
Additionally, the devices are equipped with inReach technology for global satellite communication, by which users can stay connected with friends.
Further, the devices are compatible with Garmin’s Group Ride Radio, Garmin PowerSwitch digital switch box and Garmin GPS dog trackers.
The latest devices are expected to expand the company’s reach to powersports enthusiasts, which in turn will expand the customer base.
Growing Automotive Segment
Garmin is making strong efforts to revolutionize the automotive segment and provide safe driving features to drivers, commuters as well as motorists of all types.
In addition to the recent release, the company introduced the Garmin DriveSmart 66, 76 and 86 series with easy displays, better voice assist navigation along with preloaded traveler content to provide an enhanced driving experience to drivers.
It also introduced a dash cam series with advanced features to help drivers record any incident that occurs in front of the vehicle.
GRMN also launched dezl OTR500 featuring a 5.5” size and HD resolution touchscreen display to provide efficient navigation to truck drivers.
Further, Garmin collaborated with Amazon to integrate its Alexa Custom Assistant technology into Garmin’s in-vehicle infotainment and navigation systems for leading automakers including BMW Group, Ford, Honda, Toyota, Daimler as well as Geely.
These endeavors are driving Garmin’s performance in this segment, which generated $138.1 million, accounting for 11.6% of total revenues for fiscal third-quarter 2021. Also, revenues from this segment grew 7% year over year.
Expanding Product Portfolio
The latest introduction of devices bodes well with the company’s growing efforts toward expanding the product portfolio.
Recently, the company introduced wireless communication enhancements between Edge cycling computers and SHIMANO Di2 electronic shifting systems to provide a better riding experience to cyclists.
In addition, the company unveiled a portable golf launch monitor named Approach R10 in a bid to expand its reach to golfers.
Additionally, the company introduced the Garmin Surround View Camera System that gives captains a 360-degree view of their vessel’s perimeter to avoid collision.
Further, GRMN introduced TXi- engine indication system support for twin turboprop aircraft like Cessna 425, the King Air 90 series, and select Pratt & Whitney PT6A turboprop-powered Piper Cheyenne I and II.
We note that Garmin’s strong endeavors to expand product offerings will continue to drive its momentum across customers and bolster its presence in various end-markets served.
Yet, weak personal navigation device market remains a headwind. Further, macroeconomic headwinds and seasonality are risks for the company.
Zacks Rank & Stocks to Consider
Currently, Garmin carries a Zacks Rank #4 (Sell).
Investors interested in the broader technology sector can consider some better-ranked stocks like
Advanced Micro Devices ( AMD Quick Quote AMD - Free Report) , Mimecast Limited and Arrow Electronics ( ARW Quick Quote ARW - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Advanced Micro Devices has gained 59.9% on a year-to-date basis. The long-term earnings growth rate for AMD is currently projected at 46.2%.
Mimecast has gained 60.8% on a year-to-date basis. The long-term earnings growth rate for MIME is currently projected at 35%.
Arrow Electronics has gained 31.6% on a year-to-date basis. The long-term earnings growth rate for ARW is currently projected at 27.4%.