Garmin (GRMN – Free Report) unveiled GPS cycling computers named Edge Explore 2 and Edge Explore 2 Power Mount Bundle.
Bike computers feature improved battery life and high-contrast maps of popular roads and high-traffic areas to avoid so riders can navigate 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 riders to charge their bike computers with the compatible bike while riding.
With the recent launch of GPS bike computers, Garmin aims to provide an enhanced riding experience for cyclists.
This, in turn, should boost the adoption rate of bike computers among cyclists.
Expand offers for cyclists
In addition to the recent launch, Garmin last month launched the Edge 1040 Solar, which offers solar charging capability and multi-band GNSS technology, so riders can ride with confidence on tough roads.
In May, Garmin introduced the Varia RCT715 reversing radar, complete with camera and taillight. The device aims to provide cyclists with better visibility of approaching vehicles during a ride.
In March 2022, Garmin unveiled the Tacx NEO Motion Plates, which provide flexibility of movement and allow trainers to assume a natural riding position for effective training. In addition, the plates provide a better training experience for cyclists by giving them a feeling of riding outdoors.
We note that the consistent introduction of cycling offerings continues to help Garmin gain traction with cyclists. This, in turn, will help GRMN improve performance in the fitness segment, which has seen a downturn since the start of this year.
The segment generated sales of $220.9 million in the first quarter of 2022, representing 18.8% of total sales, down 28% year-over-year.
The strengthening performance of the fitness segment will further boost GRMN’s revenue growth and help it gain investor confidence in the short and long term.
GRMN shares are down 25.2% year-to-date, outpacing the IT & Technology sector’s 29.1% drop.
Efforts to boost prospects
Garmin’s ongoing efforts to introduce innovative sports and fitness solutions are helping it expand its presence in the booming market for GPS bike computers.
The highlighted market is witnessing significant growth in recent times owing to the rising awareness of physical fitness and the resultant rise in demand for cycling leisure activities.
According to the Mordor Intelligence report, the market is expected to reach $768 million by 2027, growing at a CAGR of 6% between 2022 and 2027.
According to a report by ReportLinker, the market is expected to reach $219.4 million by 2025, growing at a CAGR of 4.98% from 2021 to 2025.
Zacks Ranking and Stocks to Consider
Currently, Garmin carries a Zacks Rank #3 (Hold). Investors interested in the broader Zacks Computer & Technology sector may consider some higher-ranked stocks like Aspen Technology (AZPN – free report), Analog devices (ADI – free report) and AgilentTechnologies (A – free report). While Aspen Technology sports a Zacks rank #1 (strong buy), Analog Devices and Agilent Technologies currently carry a Zacks rank #2 (buy). You can see the full list of today’s Zacks #1 Rank stocks here.
Aspen Technology has returned 18.2% year-to-date. AZPN’s long-term earnings growth rate is currently projected at 18.4%.
Analog Devices has lost 15.7% since the start of the year. ADI’s long-term earnings growth rate is currently projected at 12.3%.
Agilent Technologies has lost 25.3% since the start of the year. The long-term earnings growth rate for A is currently projected at 10%.