Trimble ( TRMB Quick Quote TRMB - Free Report) is leaving no stone unturned to bolster its agriculture business on the back of its expanding product portfolio. This is evident from its latest launch of agriculture displays for precision-specific applications —GFX-1060 and GFX-1260. GFX-1060 is a 10-inch display and GFX-1260 is a 12-inch display. Both feature an Android-based operating system and are compatible with the Trimble NAV-500 and NAV-900 Global Navigation Satellite System guidance controllers. The displays are compatible with more than 10,000 vehicle models across above 40 equipment brands. The displays’ advanced processing power aids in controlling and executing in-field work seamlessly. The devices offer flexible connectivity across farms through integrated wireless options. All the features are likely to aid the adoption rate of GFX-1060 and GFX-1260 in the days ahead. Growth Prospects
The latest move is likely to aid Trimble in expanding its presence in the booming precision agriculture market.
Per a Straits Research report, the global precision agriculture market is likely to reach $19.2 billion by 2030, witnessing a CAGR of 14.95% between 2022 and 2030. A Grand View Research report indicates that the global precision farming market is expected to see a CAGR of 12.8% during the above-mentioned period. Trimble’s deepening focus in this promising market is likely to help it win investors’ confidence in the near term. Coming to the price performance, Trimble has lost 26.7% in the year-to-date period against the industry’s decline of 27.2%. Growing Agricultural Initiatives
The latest move bodes well for the company’s growing efforts toward expanding agriculture offerings.
The launch of GFX-1060 and GFX-1260 added strength to Trimble’s GFX portfolio of precision agriculture displays. Apart from this, Trimble recently entered a definitive agreement to take over a France-based technology company, Bilberry. Notably, Bilberry applies artificial intelligence and deep learning technology to its spraying solutions for the real-time identification of various types of weeds for different types of crops. The takeover of Bilberry will expand Trimble’s portfolio of crop-protection solutions. Trimble, in collaboration with CLASS, built a precision farming system to help CLASS operators in effective tillage, broad-acre seeding, spraying and harvest operations. Trimble invested in an agricultural technology company called Sabanto, which offers Farming as a Service to help farmers address the challenges of labor shortages, non-stop field operations, weather and significant capital expenses for agriculture machinery. All the endeavors are likely to contribute well to top-line growth of the company’s resources and utilities segment in the days ahead. The same generated revenues of $214.8 million (23% of the total revenues) in the second-quarter 2022, up 8.8% from the prior-year quarter. Zacks Rank & Stocks to Consider
Currently, Trimble carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Pure Storage ( PSTG Quick Quote PSTG - Free Report) , Arista Networks ( ANET Quick Quote ANET - Free Report) and Teradata ( TDC Quick Quote TDC - Free Report) . While Pure Storage sports a Zacks Rank #1, Arista Networks and Teradata carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Pure Storage has lost 10.8% in the year-to-date period. The long-term earnings growth rate for PSTG is currently projected at 35.5%. Arista Networks has lost 15.6% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 15.7%. Teradata has lost 24.9% in the year-to-date period. The long-term earnings growth rate for TDC is currently projected at 27.4%.