Garmin (GRMN – Free Report) has introduced GPS bike computers called Edge Explore 2 and Edge Explore 2 Power Mount Bundle.
Bike computers feature extended battery life and high-contrast maps of popular roads and high-traffic areas to avoid so cyclists can take a safer route.
The Edge Explore series is equipped with security and tracking features and can be connected to a compatible smartphone. The series is also compatible with the Varia line of cycling awareness devices.
The new Edge Power Mount included with the Edge Explore 2 Power Mount Bundle allows cyclists to charge their bike computers with a compatible bike while riding.
With the recent launch of GPS cycling computers, Garmin aims to provide an enhanced riding experience to cyclists.
In turn, this is expected to increase the rate of cycle computer adoption among cyclists.
Expanding the offer for cyclists
In addition to the recent launch, last month Garmin released the Edge 1040 Solar, which features solar charging capability and multi-band GNSS technology, for cyclists to ride with confidence on challenging roads.
In May, Garmin introduced the Varia RCT715 reversing radar, with camera and rear light. The device aims to give cyclists improved visibility of oncoming vehicles while riding.
In March 2022, Garmin introduced the Tacx NEO Motion Plates, which provide flexibility of movement and allow trainers to assume a natural riding position for effective training. Moreover, boards offer a better training experience to cyclists by giving them the feeling of riding outdoors.
We note that the consistent rollout of cycling offerings continues to help Garmin gain momentum among cyclists. This in turn will help GRMN to improve the performance of the fitness segment, which has seen a decline since the beginning of this year.
The segment generated sales of $220.9 million in the first quarter of 2022, representing 18.8% of total sales, a decrease of 28% compared to the previous year.
Strengthening the performance of the fitness segment will further drive GRMN’s top-line growth and help it win investor confidence in the near and long term.
GRMN shares are down 25.2% year-to-date, outpacing the computing and technology sector’s 29.1% decline.
Efforts to increase the odds
Garmin’s ongoing efforts to introduce innovative sports and fitness solutions are helping it expand its presence in the growing GPS bike computer market.
The highlighted market has seen significant growth in recent times owing to the growing awareness of fitness and the resulting demand for recreational cycling activities.
According to a report by Mordor Intelligence, the market is likely to reach $768 million by 2027, with a CAGR of 6% between 2022 and 2027.
According to ReportLinker, the market is expected to reach USD 219.4 million by 2025, with a CAGR of 4.98% from 2021 to 2025.
Zacks Rank and Stocks to Consider
Currently, Garmin carries a Zacks Rank #3 (Hold). Investors interested in the broader Zacks Computer & Technology sector may want to consider some higher-ranked stocks such as Aspen Technology (AZPN – free report) , Analog devices (ADI – Free Report) i Agilent Technologies (A – Free report). While Aspen Technology has a Zacks Rank #1 (Strong Buy), Analog Devices and Agilent Technologies currently have a Zacks Rank #2 (Buy). You can see complete list of today’s Zacks #1 Rank stocks here.
Aspen technology has achieved a return of 18.2% in the period since the beginning of the year. The long-term earnings growth rate for AZPN is currently projected at 18.4%.
Analog Devices has lost 15.7% year-to-date. ADI’s long-term earnings growth rate is currently projected at 12.3%.
Agilent Technologies has lost 25.3% year-to-date. The long-term earnings growth rate for A is currently forecast at 10%.
