Trimble Inc. (TRMB - Free Report) is firing on all cylinders to bolster its presence in the automobile industry by strengthening the automotive software portfolio.
The recent roll-out of the company’s Global Navigation Satellite System ("GNSS") software library, Trimble RTX Auto, reflects its efforts in this regard.
Notably, the new library not only works on Trimble GNSS devices but also on non-Trimble GNSS devices and can be primarily used in safety critical automotive applications.
Further, the library abides by all the functional safety rules in Advanced Driver Assistance Systems (“ADAS”) and the autonomous driving space. It also works efficiently with any on-vehicle sensor, owing to Automotive Safety Integrity Level (ASIL) and Automotive Software Process Improvement and Capability Determination (ASPICE) certifications.
Additionally, RTX Auto helps in decoding the company’s RTX correction stream, which will yield robust positioning accuracy.
All these strong features will help Trimble gain traction among the autonomous driving solutions developers and automotive OEMs.
This move bodes well for the company’s continued focus on expanding footprint in the autonomous driving and ADAS markets on the back of its strong efforts being made to automize vehicles.
Per MarketsandMarkets, the ADAS market is expected to hit $91.8 billion by 2025, at a CAGR of 20.96% between 2018 and 2025.
Further, an Allied Market Research report indicates that the autonomous vehicle market is likely to hit $56.2 billion in 2019 and witness a CAGR of 39.5% between 2019 and 2026 to reach $556.7 billion by 2026.
We believe that Trimble is well positioned to capitalize on these growth opportunities with the help of its robust RTX technology, which computes satellite orbit and clock information-based high accuracy positions by leveraging global reference station network data.
Portfolio Strength: Key Catalyst
The company’s strong endeavors toward expanding product offerings are a key catalyst. The launch of RTX Auto is expected to aid the performance of Trimble’s Advanced Positioning Division by delivering enhanced experience to the automobile companies. This is likely to drive the company’s top line.
In fact, General Motor’s (GM - Free Report) hands-free driving car — Super Cruise — is already using Trimble’s RTX-based absolute positioning.
Apart from this, the company unveiled Farmer Core, a software that reduces the probability of human error by eliminating the need for manual sharing of data. Farmer Core will strengthen the company’s presence in the global farm management software space.
Additionally, Trimble revealed a steel fabrication software solution — Tekla PowerFab — which offers real-time information to all project parties.
We believe the company’s expanding and diverse product and solutions portfolio will keep serving its customers efficiently across all end-markets.
Zacks Rank & Other Stocks to Consider
Currently, Trimble carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader technology sector are Garmin (GRMN - Free Report) and Universal Electronics (UEIC - Free Report) . While Garmin sports a Zacks Rank #1 (Strong Buy), Universal Electronics carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings growth rate for Garmin and Universal Electronics is currently pegged at 7.35% and 15%, respectively.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>