Garmin Ltd.’s (GRMN - Free Report) unit, Garmin International Inc., recently announced a deal with leading digital music service, Spotify, to add Spotify support services on its wristwear, Fenix 5 Plus series.
Per the deal, Spotify will be integrated into Fenix 5 Plus wearable series. The service will provide Garmin customers as well as Spotify Premium users with a fenix 5 Plus series watch for downloading and listening to millions of songs on Spotify, even when they are offline and do not have their phones.
Though Fenix 5 Plus series is the first to get the Spotify support, it should soon be extended to Garmin’s other devices.
Garmin’s multisport GPS smartwatch, the Fenix 5 Plus series, is especially designed for outdoor adventurers and athletes. As listening to music has become a basic need nowadays, the integration with Spotify will definitely increase the adoption rate of Garmin’s new multisport watches.
In addition, the deal will help the company to expand its share in the wearables market and fend off competition.
Coming to share price, shares of Garmin have gained 16.6% on a year-to-date basis, outperforming the industry’s 7.7% rally.
Worldwide provider of navigation, communications and information devices, Garmin has been making efforts to increase its share in the outdoor market on the back of new products and upgrades to the existing ones. It is experiencing notable success in this segment because of many newly added technologies that are gradually expanding its markets and enabling it to enter new categories.
The latest integration will help expand its market share in the Outdoor segment, which focuses on enhancing users’ outdoor experiences. In the last reported quarter, the Outdoor segment was up 39.8% sequentially and 3.5% year over year, driven mainly by robust demand for wearables.
The company’s Fenix 5 Plus GPS-enabled range should continue to drive sales all through the year.
Zacks Rank & Other Stocks to Consider
Currently, Garmin has a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the technology sector include eXp World Holdings, Inc. (EXPI - Free Report) , ANGI Homeservices Inc. (ANGI - Free Report) and Internap Corporation (INAP - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for eXp World Holdings, ANGI Homeservices and Internap is currently projected to be 10%, 25% and 2%, respectively.
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