Garmin Ltd.’s (GRMN - Free Report) unit, Garmin International Inc. recently announced the availability of new products from Tacx.
These products include smart trainers, basic trainers, rollers and accessories. A few other products are also expected to be available in the coming months.
This announcement is inline with its strategy of providing an enhanced experience to fitness freaks with new and enhanced products.
Expanding Product Portfolio
Tacx, a Dutch company, was acquired by Garmin in April in a bid to expand the fitness business.
This acquisition should help Garmin to expand its product portfolio. The Tacx smart trainers include NEO 2 Smart, FLUX S Smart, Flow Smart and Satori Smart. In addition to smart trainers, other basic trainers include Booster, Blue Matic, and Blue Twist, as well as rollers and accessories.
These devices measure speed, power and accuracy, and should thereby help Garmin to expand top-line growth. These products, which come with a two-year warranty, are available at garmin.com.
Notably, all these products are expected to sustain the performance of the company across the geographical regions served.
Garmin Ltd. Price and Consensus
Worldwide provider of navigation, communications and information devices, Garmin has been making efforts to increase its share in the fitness 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 the company to enter new categories.
Strategic acquisitions and other deals have significantly contributed to Garmin’s growth trajectory via expanding its product portfolio. The buyout of Tacx should be accretive to Garmin’s fitness portfolio.
The latest product releases will help expand its market share in the Fitness segment. In the last reported quarter, the Fitness segment’s revenues increased 8.6% from the year-ago period, driven by strength in wearables.
It is clear that the company is on the right track with regard to product offerings and expansion plans.
Zacks Rank & Stocks to Consider
Currently, Garmin carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Autohome Inc. (ATHM - Free Report) , Match Group, Inc. (MTCH - Free Report) and Marchex, Inc. (MCHX - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Autohome, Match Group and Marchex is currently projected at 20.9%, 15.2% and 15%, respectively.
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