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Garmin's (GRMN) New Cycling Devices to Boost Fitness Prospects
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Garmin (GRMN - Free Report) unveiled Edge 540 and Edge 840 series to expand its GPS cycling computer offerings.
Both models have a 2.6-inch color display and feature button controls that work in any riding environment.
The new solar charging cycling computers feature improved battery life. Also, the new models provide cyclists with dynamic insights and analytics.
Edge 540 and Edge 840 feature targeted adaptive coaching, delivering a personalized experience and enabling riders to view daily suggested workouts and training prompts.
Its real-time stamina helps monitor and track exertion levels during a ride.
The new cycling computers are equipped with safety and tracking features. Both models are compatible with the Varia line of cycling awareness devices.
With the recent launch of GPS cycling computers, Garmin aims to provide cyclists with an enhanced riding experience. This, in turn, is expected to boost the adoption rate of cycling computers.
The company has expanded its overall offerings for cyclists and the fitness segment on the heels of the new cycling computers.
Garmin’s latest move aligns with its growing efforts to bolstering its GPS cycling computer portfolio.
Apart from Edge 540 and Edge 840, the company’s introductions of Edge Explore 2 and Edge Explore 2 Power Mount Bundle are noteworthy.
These endeavors are likely to help Garmin rapidly penetrate the booming GPS bike computer market.
The underlined market is witnessing significant growth due to rising fitness awareness and increased demand for recreational bicycle activities.
Per the Mordor Intelligence report, the market is likely to hit $768 million by 2027, witnessing a CAGR of 6% between 2022 and 2027.
According to a Maximize Market Research report, the market is expected to see a CAGR of 5.1% between 2022 and 2029.
Portfolio Strength for Cyclists
Apart from the recent launch, the introduction of an all-in-one indoor smart bike, Tacx NEO Bike Plus, which offers accurate power, speed and cadence metrics, remains a positive.
GRMN offers Edge 1040 Solar, featuring solar-charging capability and multi-band GNSS technology, for cyclists to help ride on challenging roads.
We believe that the consistent introduction of cycling offerings will drive Garmin’s momentum among cyclists. This, in turn, will likely aid the fitness segment’s performance, which has been witnessing a downturn.
The segment generated sales of $336.5 million in fourth-quarter 2022, accounting for 25.8% of the total sales, decreasing 28% year over year.
Shares of GRMN have moved down 11.8% in the past year compared with the industry’s decline of 11.3%.
Image: Bigstock
Garmin's (GRMN) New Cycling Devices to Boost Fitness Prospects
Garmin (GRMN - Free Report) unveiled Edge 540 and Edge 840 series to expand its GPS cycling computer offerings.
Both models have a 2.6-inch color display and feature button controls that work in any riding environment.
The new solar charging cycling computers feature improved battery life. Also, the new models provide cyclists with dynamic insights and analytics.
Edge 540 and Edge 840 feature targeted adaptive coaching, delivering a personalized experience and enabling riders to view daily suggested workouts and training prompts.
Its real-time stamina helps monitor and track exertion levels during a ride.
The new cycling computers are equipped with safety and tracking features. Both models are compatible with the Varia line of cycling awareness devices.
With the recent launch of GPS cycling computers, Garmin aims to provide cyclists with an enhanced riding experience. This, in turn, is expected to boost the adoption rate of cycling computers.
The company has expanded its overall offerings for cyclists and the fitness segment on the heels of the new cycling computers.
Garmin Ltd. Price and Consensus
Garmin Ltd. price-consensus-chart | Garmin Ltd. Quote
Growth Prospects
Garmin’s latest move aligns with its growing efforts to bolstering its GPS cycling computer portfolio.
Apart from Edge 540 and Edge 840, the company’s introductions of Edge Explore 2 and Edge Explore 2 Power Mount Bundle are noteworthy.
These endeavors are likely to help Garmin rapidly penetrate the booming GPS bike computer market.
The underlined market is witnessing significant growth due to rising fitness awareness and increased demand for recreational bicycle activities.
Per the Mordor Intelligence report, the market is likely to hit $768 million by 2027, witnessing a CAGR of 6% between 2022 and 2027.
According to a Maximize Market Research report, the market is expected to see a CAGR of 5.1% between 2022 and 2029.
Portfolio Strength for Cyclists
Apart from the recent launch, the introduction of an all-in-one indoor smart bike, Tacx NEO Bike Plus, which offers accurate power, speed and cadence metrics, remains a positive.
GRMN offers Edge 1040 Solar, featuring solar-charging capability and multi-band GNSS technology, for cyclists to help ride on challenging roads.
We believe that the consistent introduction of cycling offerings will drive Garmin’s momentum among cyclists. This, in turn, will likely aid the fitness segment’s performance, which has been witnessing a downturn.
The segment generated sales of $336.5 million in fourth-quarter 2022, accounting for 25.8% of the total sales, decreasing 28% year over year.
Shares of GRMN have moved down 11.8% in the past year compared with the industry’s decline of 11.3%.
Zacks Rank and Stocks to Consider
Currently, Garmin carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Salesforce (CRM - Free Report) and Analog Devices (ADI - Free Report) . While Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has gained 31.7% in the year-to-date period. The long-term earnings growth rate for ANET is projected at 14.17%.
Salesforce has risen 45.2% in the year-to-date period. CRM’s long-term earnings growth rate is projected at 16.75%.
Analog Devices has improved 14.1% in the year-to-date period. The long-term earnings growth rate for ADI is projected at 10.5%.