Garmin GRMN unveiled the GPS cycling computers named Edge Explore 2 and Edge Explore 2 Power Mount Bundle.
The cycling computers feature improved battery life and high-contrast maps of popular roads and high-traffic areas to avoid so that cyclists can take a safer route.
The Edge Explore series is equipped with safety 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 enables cyclists to charge their cycling computers with the compatible bike while riding.
With the recent launch of GPS cycling computers, Garmin aims to provide an enhanced riding experience to cyclists.
This, in turn, is expected to boost the adoption rate of cycling computers among cyclists.
Garmin Ltd. Price and Consensus
Garmin Ltd. price-consensus-chart | Garmin Ltd. Quote
Expanding Offerings for Cyclists
Apart from the recent launch, Garmin released the Edge 1040 Solar last month, which features solar charging capability and multi-band GNSS technology, for cyclists to ride confidently on challenging roads.
In May, Garmin introduced the Varia RCT715 rearview radar, featuring camera and tail light. The device aims to provide cyclists with enhanced visibility of approaching vehicles during a ride.
In March 2022, Garmin unveiled the Tacx NEO Motion Plates, which provide movement flexibility and allow trainers to adopt a natural riding position for effective training. Moreover, the plates offer a better training experience to cyclists by providing them with an impression of riding outdoors.
We note that the consistent introduction of cycling offerings continues to help Garmin gain momentum among cyclists. This, in turn, will help GRMN improve the fitness segment’s performance, which has been witnessing a downturn since the start of this year.
The segment generated sales of $220.9 million in first-quarter 2022, accounting for 18.8% of total sales, decreasing 28% year over year.
Strengthening performance of the fitness segment will further drive GRMN’s top-line growth and help it win investors’ confidence in the near and the long term.
Shares of GRMN have been down 25.2% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 29.1%.
Efforts to Boost Prospects
Garmin’s constant efforts to introduce innovative sports and fitness solutions are helping it expand its presence in the booming GPS bike computers market.
The underlined market is witnessing significant growth in recent times owing to rising fitness awareness and the resultant demand swell for recreational bicycle activities.
Per the Mordor Intelligence report, the market is likely to hit $768 million by 2027, witnessing a CAGR of 6% between 2022 and 2027.
According to a ReportLinker report, the market is expected to reach $219.4 million by 2025, seeing a CAGR of 4.98% from 2021 to 2025.
Zacks Rank & Stocks to Consider
Currently, Garmin carries a Zacks Rank #3 (Hold). Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Aspen Technology AZPN, Analog Devices ADI and Agilent Technologies A. While Aspen technology sports a Zacks Rank #1 (Strong Buy), Analog Devices and Agilent Technologies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aspen technology has returned 18.2% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 18.4%.
Analog Devices has lost 15.7% in the year-to-date period. ADI’s long-term earnings growth rate is currently projected at 12.3%.
Agilent Technologies has lost 25.3% in the year-to-date period. The long-term earnings growth rate for A is currently projected at 10%.
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