Garmin (GRMN) Boosts Fitness Tracking Efforts With New Watch
Garmin GRMN is constantly gaining momentum in the wearable market on the back of its robust smartwatches. Its expanding smartwatch portfolio is helping the company gain momentum among fitness enthusiasts across the world.
Recently, the company launched its new health and fitness smartwatch called vivoactive 5, which comes with a vibrant AMOLED display. The watch features 11 days of battery life in smartwatch mode and motivates users to lead an active life by supporting their fitness goals.
One of the health monitoring features in the watch is the sleep coach, which offers a sleep score and personalized coaching that keeps track of different sleep stages, naps, Pulse Ox1 and heart rate variability (HRV) status.
Other features include a morning report, which provides an overview of sleep, recovery and HRV status; nap detection, which tracks or logs naps automatically and Body Battery enhancements, which monitor energy levels throughout the day. The new watch is also designed to inform users how each workout benefits their bodies.
vivoactive 5 comes with in wheelchair mode, allowing users to track pushes and follow wheelchair-specific workouts and sports. It also provides guided meditation practices.
We note that the above-mentioned features are expected to boost the adoption rate of the vivoactive 5 in the days ahead.
Garmin Ltd. Price and Consensus
Garmin Ltd. price-consensus-chart | Garmin Ltd. Quote
Strengthening Smartwatch Offerings
Apart from the latest launch, Garmin recently introduced GPS smartwatches, namely the Venu 3 and Venu 3S. The Venu 3 series is designed to provide a clear picture of users’ health. The series watches are equipped with AMOLED touchscreen displays, an extensive 14-day battery life, a built-in speaker and a microphone.
The company recently launched a series of premium multisport GPS smartwatches, namely the fenix 7 Pro. The fenix 7 Pro smartwatches provide pro-grade performance insights to users and feature advanced mapping capabilities. It offers weather map overlays, with the help of which users can view upcoming weather conditions seamlessly.
It also unveiled its next-generation high-performance GPS smartwatch series — epix Pro, which features a crystal-clear AMOLED display and improved battery life.
GRMN also added an AMOLED display feature to its Forerunner 265 and Forerunner 965 GPS running watch series.
Forerunner 265 and 965 smartwatches enable users to access health features and smart notifications seamlessly on the back of the responsive touchscreen displays. These watches also offer other innovative features to athletes, such as a morning report, a race widget, personalized daily suggested workouts, a training readiness score, running power and dynamics and heart rate variability.
Growth Prospects
Garmin’s above-mentioned efforts are expected to continue, helping it solidify its presence in the booming smartwatch and wearable markets.
Per a Fortune Business Insights report, the global smartwatch market is anticipated to hit $29.31 billion in 2023 and reach $77.22 billion by 2032, witnessing a CAGR of 14.8% between 2023 and 2030.
Per a report from Straits Research, the wearable fitness tracker market is expected to hit $192 billion by 2030, seeing a CAGR of 17.5% between 2022 and 2030.
We believe Garmin’s deepening focus on these promising markets, along with its expanding smartwatch offerings, is expected to aid it in gaining investors’ optimism in the days ahead.
GRMN has gained 14.4% in the year-to-date period, outperforming the industry’s growth of 8.2%.
Garmin’s growing fitness-oriented smartwatch offerings are expected to aid growth in its fitness segment, which generated sales of $334.9 million (25.4% of total revenues) in second-quarter 2023, up 23% year over year.
Our model estimate for 2023 fitness revenues is pegged at $1.22 billion, reflecting 10% growth from 2022.
However, the company is grappling with intensifying competition in the smartwatch space, which remains a major concern for its market position. The current economic uncertainties do not bode well for its growth prospects.
Zacks Rank & Stocks to Consider
Currently, Garmin carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Dell Technologies DELL, Badger Meter BMI and Arista Networks ANET. While Dell Technologies sports a Zacks Rank #1 (Strong Buy), Badger Meter and Arista Networks carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell Technologies shares have gained 71.4% in the year-to-date period. DELL’s long-term earnings growth rate is currently projected at 12%.
Badger Meter shares have gained 37.9% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 15.05%.
Arista Networks shares have gained 46.6% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.75%.
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