Trimble Inc. (TRMB - Free Report) is leaving no stone unturned to bolster footprint in the metal fabrication market on the back of its portfolio strength and innovative technologies.
Recently, the company has unveiled a steel fabrication software solution — Tekla PowerFab —that offers real-time information to all project parties which in turn will aid collaboration across various project teams throughout the structural steel workflow.
Moreover, the new software aids in automation of fabrication management process by combining Tekla EPM with Tekla Structures and Trimble Connect which provides clear visibility of components status at every level of fabrication.
With the latest move, the company’s steel fabrication software portfolio expands, in turn enhancing its key offerings to customers.
Per a report from Grand View Research, the global structural steel market is expected to witness a CAGR of 5.6% between 2019 and 2025 from $96.1 billion in 2018.
Further, according to Transparency Market Research report, the global market for structural steel fabrication is anticipated to witness a CAGR of 4.24% between 2018 and 2026.
Notably, with Tekla PowerFab, the company strives to help companies to manage their workflows in a cost-efficient way. This is likely to aid Trimble’s momentum among the steel fabricators, which in turn will expand its customer base. Consequently, this will drive its top-line growth.
Consequently, we believe Trimble with its latest launch and robust steel fabrication portfolio will be able to reap benefits from these potential markets.
Portfolio Strength: A Key Catalyst
Trimble’s strong focus toward expansion and innovation of its product portfolio remains its key catalyst.
The company’s latest move strengthens its Tekla portfolio by adding structural steel workflows for planning, estimating, designing, managing and automating the fabrication process. Further, it expands Constructible Process of Trimble.
Apart from this, the company acquired FabSuite in 2018 to expand its steel fabrication software portfolio.
Further, the company recently rolled out a construction business software and project management tool called Contractor WorkZone. This will help the company in gaining traction among the small contractors and companies. Further, Trimble teamed up with Digi International to offer latter’s SmartSense solution to its fleet customers.
Additionally, it unveiled a new wearable hard hat compatible device in collaboration with Microsoft. The device is called Trimble XR10 with HoloLens 2 which provides access to holographic information to the workers on worksite in safety-controlled environments.
We believe an expanding product portfolio will continue to drive Trimble’s business growth.
Zacks Rank & Stocks to Consider
Currently, Trimble carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader technology sector are Koninklijke Philips (PHG - Free Report) , Universal Electronics (UEIC - Free Report) and Garmin (GRMN - Free Report) . While Koninklijke Philips sports a Zacks Rank #1 (Strong Buy), Universal Electronics and Garmin carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings growth rate for Koninklijke Philips, Universal Electronics and Garmin is currently pegged at 15.18%, 15% and 7.35%, respectively.
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