Garmin (GRMN – Free Report) is leaving no stone unturned to strengthen its fitness segment on the back of product innovation.
The latest introduction of a powerful direct drive trainer namely the Tacx NEO 3M is a testimony to the same.
The new smart indoor trainer, which features an electromagnetic motor braking system, offers a realistic ride through integrated motion plates and multi-directional motion functionality.
The device can integrate seamlessly with the Tacx Training app as well as other riding platforms such as TrainerRoad and Zwift.
It comes with advanced training and performance metrics to provide customers with an enhanced fitness as well as cycling experience.
Expanding the fitness segment
Additionally, Garmin recently launched its new health and fitness smartwatch called the vivoactive 5, which comes with a bright AMOLED display. The watch has 11 days of battery life in smartwatch mode and motivates users to lead an active life by supporting their fitness goals.
One of the watch’s health monitoring features is the sleep coach, which offers sleep assessment and personalized training that monitors different sleep stages, naps, Pulse Ox1 and heart rate variability status.
The company has extended ECG app integration to epix Pro series, fenix 7 Pro series, Venu 3 series and tactix 7 — Smartwatches AMOLED Edition.
Also, Garmin introduced the MARQ Carbon collection, featuring three modern luxury tool watches made from 130 layers of fused carbon fiber. Each watch features an AMOLED touchscreen display, a domed sapphire lens and up to 16 days of battery life.
All these efforts are likely to continue to aid the performance of the fitness segment in the coming days.
The highlighted segment generated sales of $352.98 million (27.6% of total sales) in the third quarter of 2023, an increase of 26% from the prior quarter level.
For the fourth quarter of 2023, our model projects fitness revenue of $399.7 million, representing 18.8% year-over-year growth.
Strengthening portfolio offerings
The latest launch is in sync with the company’s growing efforts to strengthen its overall portfolio.
Garmin recently introduced the Descent Mk3 series of dive computers and transceivers with SubWave sonar technology, air integration options and a vivid AMOLED display featuring multiple dive modes, DiveView charts and dive readiness scores, as well as other health, fitness and related functions.
It launched an all-in-one dive computer and smartwatch, namely the Descent G1 Solar – Ocean Edition, in a bid to increase its adventure watch offerings.
The company launched the eTrex Solar, a solar-powered handheld GPS device with unlimited battery life of up to 1,800 hours in expedition mode, allowing users to stay on the trail longer.
It announced the ECHOMAP Ultra 2 chartplotter series, featuring advanced features such as UHD scanning sonar, pre-installed Garmin Navionics+ mapping, wireless networking capabilities and a one-year subscription for daily updates.
All of the above endeavors are likely to continue to help Garmin’s overall financial performance. This, in turn, is expected to instill optimism among investors in the stock.
Garmin raised its 2023 revenue guidance from $5.05 billion to $5.15 billion.
GRMN shares have returned 33.8% in the year-to-date period, compared to the industry’s 9.6% gain.
Zacks Rank and Stocks to Consider
Garmin currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Badger meter (BMI – Free report), Arista Networks (Anetta – Free report) and NVIDIA (NVDA – Free report). While Badger Meter currently has a Zacks Rank #1 (Strong Buy), both Arista Networks and NVIDIA currently carry a Zacks Rank #2 (Buy). You can see the full list of today’s Zacks #1 Rank stocks here.
Badger Meter shares are up 37.8% year-to-date. BMI’s long-term earnings growth is 20.39%.
Shares of Arista Networks are up 75.9% year-to-date. The long-term earnings growth rate for ANET is 19.77%.
Shares of NVIDIA are up 167.4% year-to-date. NVDA’s long-term revenue growth is 13.5%.
