Garmin International Inc., a subdivision of Garmin Ltd. (GRMN - Free Report) , recently announced its association with an advocacy initiative called National Runners Alliance. The collaboration is aimed at providing tools to women for a safe and harassment-free running experience.
Additionally, Runner’s Alliance will provide online articles on the most appropriate and safe methods of running for a female. This collaboration will help Garmin expand its market share in the fitness market.
User Base Expansion Continues
Keeping safety as the company’s focal point, Garmin has developed a strong portfolio of wearable tools like its compatible smartwatch. The smartwatch works on a real-time basis and can alert a user’s emergency contacts immediately in a crisis situation.
Additionally, the LiveTrack feature embedded in the smartwatch allows family and friends to track a user’s location live. Consequently, these location-enabled features in Garmin’s devices will help the company to gain traction among customers.
Moreover, Runner’s World is undertaking a number of initiatives like conducting workshops and showcasing documentaries on victims of harassment to create awareness. Garmin is expected to gain popularity from such events because of its recent collaboration with Runner’s World.
Notably, a survey conducted by Runners World and Women’s Health, the parent initiative of Runners Alliance, shows that 84% of women surveyed have been harassed while running.
This move by Garmin is a step toward addressing this issue and is expected to gain momentum among the female population. As a result, the company's customer base is likely to expand.
The latest move positions the company well to reap benefits from the global smartwatch market, which per a data from ResearchAndMarkets is expected to witness CAGR of 16.4% over 2018-2026.
Further, a Mordor Intelligence report shows that the particular market is likely to be worth $130.55 billion by 2024 at a CAGR of 18.2%.
We believe Garmin’s enhanced wearable offerings will help the company to strengthen its foothold in the global smartwatch market.
Fitness Segment to Grow
Garmin’s fitness segment has been growing over the last few years. In second-quarter 2019 this segment generated sales of $251.65 million (26.3% of total revenue), up 12% from the year-ago quarter.
We believe that the company’s continued effort to develop advanced location-enabled wearables and focus on strengthening its partnership portfolio is likely to drive top-line growth in the fitness segment.
Zacks Rank & Stocks to Consider
Currently, Garmin sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader technology sector are Benefitfocus, Inc. (BNFT - Free Report) , Alteryx, Inc. (AYX - Free Report) and Cirrus Logic, Inc. (CRUS - Free Report) . Each of the stock flaunts a Zacks Rank #1. 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 20%, 17.6% and 15%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>