Trimble (TRMB - Free Report) recently launched a new sensor solution and system namely Weedseeker 2, a spot spray system.
Notably, Weedseeker 2 works on a real-time basis and helps to keep a record of every weed that is sprayed and map the problem areas.
Further, the system is designed in such a way that it can sense and target individual weeds, thereby reducing the use of herbicides and other chemicals. This makes the system more environmentally sustainable and cost-efficient for growers. Moreover, it is believed that the new solution is likely to save chemical costs up to 90%.
Additionally, the upgraded processor in the sprayer gives a speed of up to 40 kilometers per hour. Its operating speed is expected to increase its adoption among farmers as it will save time.
The solution expands Trimble’s offerings for the agricultural sector.
The latest move positions the company well to reap benefits from the global weed control market, which per a report from Industry Arc, is expected to witness CAGR of 3.5% over a period of 2019-2025.
Further, a WiseGuy Report report shows that the particular market is likely to hit $44.90 billion by 2026 at a CAGR of 5.35%.
We believe that Weedseeker 2 is likely to help Trimble rapidly penetrate into the weed control market worldwide.
Resources and Utilities Segment to Grow
Trimble is focused on strengthening its agriculture division. This, in turn, is likely to drive growth within Resources and Utilities segment of the company.
Besides the recent product launch, the company also unveiled Farmer Core, which is an agriculture software subscription that will enable farmers to connect all aspects of their farm operation.
Further, Trimble recently acquired timber management software solutions provider 3LOG Systems. This has further strengthened its agriculture and forestry portfolio.
We note that in second-quarter 2019, the segment generated $152.7 million of revenues (17.8% of total revenues), up 5.1% year over year, owing to solid momentum in the agriculture space.
We believe the abovementioned endeavors are likely to aid performance of Trimble’s agriculture division as well as Resources and Utilities segment in the near term.
Zacks Rank & Stocks to Consider
Currently, Trimble carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Alteryx, Inc. (AYX - Free Report) , Garmin Ltd. (GRMN - Free Report) and Agilent Technologies, Inc. (A - Free Report) . While Alteryx and Garmin sport a Zacks Rank #1 (Strong Buy), Agilent carries 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 Alteryx, Garmin and Agilent is currently pegged at 17.6%, 7.4% and 11.8%, respectively.
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