Garmin Ltd. (GRMN - Free Report) is leaving no stone unturned to bolster aviation business unit on the back of its robust autonomous flight solutions.
The company’s Garmin Autoland system has received certification from Federal Aviation Administration (FAA) for use in Piper M600 jet via its G3000 integrated flight deck. This approval is a testament to the company’s focus on strengthening aviation portfolio.
Notably, Autoland System takes complete control of the flight to land the airplane safely at the nearest runway in case of an emergency.
Further, the underlined flight technology automatically communicates with air traffic control. It also advises controllers and pilots operating near the aircraft. Furthermore, it considers runway length, distance, fuel range and selects an appropriate airport for landing.
Additionally, the G3000 integrated flight deck provides passenger-centric visual and verbal communications in plain-language when Autoland is activated.
Autoland to Gain Steam
With the aid of Autoland, Garmin strives to deliver safe, smooth and technically efficient flight performance by reducing pilot’s workload.
The FAA certification along with the robust features of Autoland will aid the company in gaining traction in the autonomous flight technology space.
Moreover, these advanced safety features are likely to help Garmin in gaining momentum among the aircraft companies.
We note that Autoland system is going to be available on the Cirrus Vision Jet and Daher TBM 940 aircrafts after receiving approvals.
Aviation Segment in Focus
Garmin’s aviation business unit is likely to witness growth with the increasing adoption of Autoland. This, in turn, will drive the segment’s revenue growth.
Moreover, the company’s family of autonomous safety solutions — Garmin Autonomi, which comprises of Emergency Descent Mode (EDM) and Electronic Stability and Protection (ESP), and Autoland, has emerged as key catalyst of its aviation business.
Apart from this, strengthening flight display and deck offerings by Garmin also remain noteworthy.
Notably, Garmin’s aviation business remains robust with its solutions remaining popular at both OEM and after-market customers. Last year, gross margin from this segment stayed over 75%. The company’s initiatives to expand portfolio and enhance existing product lines are therefore positive. Also, the segment contributed 19% to total revenues in 2019.
Thereby, the latest move is likely to drive the company’s top line on the heels of well-performing aviation business.
Zacks Rank & Stocks to Consider
Garmin currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks that can be considered in the broader technology sector are BWX Technologies, Inc. (BWXT - Free Report) , Benefitfocus, Inc. (BNFT - Free Report) and Citrix Systems, Inc. (CTXS - Free Report) . While BWX Technologies sports a Zacks Rank #1 (Strong Buy), Benefitfocus and Citrix carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for BWX Technologies, Benefitfocus and Citrix is pegged at 6.86%, 30% and 7.85%, respectively.
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