Garmin Ltd. (GRMN - Free Report) seems not to be content enough when it comes to making advances in the booming wearables market on the back of the expanding smartwatch portfolio.
The latest launch of the company’s GPS smartwatch, Approach S62, backs this fact. Notably, the new sleek watch is designed for golfers. It offers high-sensitivity GPS golf accuracy and takes care of users’ fitness activities.
The new watch comes with a larger display and longer battery life. It is a 1.3-inch color touchscreen, which is 17% larger than the previous model.
It offers other important features like PlaysLike Distance and Hazard View. In addition, it is capable of analyzing critical factors such as wind speed, course layout, and a golfer’s past swings. This helps golfers select the best suited club for each shot. It also features the PlaysLike Distance option to adjust yardages to compensate for uphill and downhill shots.
We believe Garmin will be able to deliver an enhanced gaming experience to golfers with robust features of Approach S62. In addition to the above-mentioned features, the new watch monitors heart rate and displays the intensity of a user’s fitness activities. It also estimates blood oxygen saturation levels of a user through Pulse Ox sensor3.
All these will help the company in gaining momentum among golfers.
Garmin Ltd. Price and Consensus
Gaining Competitive Edge
Garmin’s growing focus on golfers is likely to strengthen its competitive position against the likes of Fitbit (FIT - Free Report) and Apple (AAPL - Free Report) , which are also making advances to bolster their wearable space presence by offering golf GPS tracking facility.
Fitbit integrates GAME GOLF GPS into the Fitbit Ionic smartwatch series, which helps in seamless tracking of stats, trends and dynamics of the golf game.
Meanwhile, Apple — with the help of Hole19 — offers a golf GPS tracking system to users of Apple Watch.
However, Fitbit and Apple have less exposure to the golf gaming space than Garmin.
In addition to Approach S62, Garmin offers Approach S10, X10, X40, S60, S20 and S40, which are designed specifically for golfers. Hence, the company’s wide portfolio of golf smartwatches will continue to strengthen its market position against Fitbit and Apple.
Wearable & Smartwatch Space Holds Promise
Garmin’s focus on expanding the wearable watch portfolio remains a major positive.
In addition to the latest launch, the company recently introduced a multisport GPS smartwatch — tactix Delta — for outdoor enthusiasts and professionals. Last year, it had unveiled a range of tool watches — the MARQ series —including MARQ Aviator, MARQ Driver, MARQ Captain, MARQ Expedition and MARQ Athlete. This is designed for various categories namely aviation, automotive, marine, outdoor and sports markets.
These watches will better serve people interested in flying, racing, sailing, exploring and sports.
Per a report from ResearchandMarkets, the global smart wearable market is expected to witness a CAGR of 19.4% between 2019 and 2024. Notably, smartwatches make up the most crucial segment of the market.
We believe Garmin’s strengthening wearable offerings will help it penetrate the global wearable market.
Zacks Rank & Another Key Pick
Currently, Garmin carries a Zacks Rank #1 (Strong Buy). Another top-ranked stock in the broader technology sector is Alphabet Inc. (GOOGL - Free Report) , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Alphabet is currently projected at 16.7%.
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