Garmin GRMN strengthened its Navionics Boating smart-device app with Auto Guidance+ technology.
The Auto Guidance+ solution offers faster route calculation and smooth pathways to provide a clear direction to boaters.
The underlined solution also provides a shoreline distance preference setting, which helps mariners know whether their vessel is closer or away from the shore.
Additionally, the Auto Guidance+ technology provides a range of navigation tools and a detailed chart content to aid the on-water activities.
With this innovative technology, Garmin aims to provide an enhanced experience to boaters, anglers, sailors and drivers.
This is expected to boost the adoption rate of Navionics Boating smart-device app among people interested in water activities, which in turn, is likely to contribute to top-line growth in the days ahead.
This is further anticipated to help Garmin win investors’ confidence in the near and long terms.
Shares of GRMN have been down 28.8% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 31.9% over the same time frame.
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Expanding Marine Offerings
Garmin is consistently working toward bolstering its marine portfolio offerings. The recent move is a step forward in that direction.
Further, GRMN keeps introducing advanced technological solutions to gain momentum among customers.
In May, Garmin released the ECHOMAP™ UHD2 chartplotter series with high-contrast scanning sonar power, mapping and fish-finding features to help anglers in effective fishing.
GRMN launched the LiveScope Plus System in February, which offers sharper resolution, reduced noise and clearest images for recreational fishing.
In January, Garmin introduced Garmin Navionics+ and Garmin Navionics Vision+ to provide an enhanced navigation experience to mariners, boaters and anglers.
With the growing number of marine solutions, Garmin is continuously strengthening its marine segment, which became its key component.
The marine segment generated sales of $254.1 million, accounting for 21.7% of total first-quarter 2022 revenues. Also, revenues were up 21% from the prior-year quarter’s reading.
Efforts to Boost Prospects
Garmin’s constant efforts in introducing innovative marine solutions are helping it expand presence in the booming marine electronics market.
The underlined market is witnessing significant growth owing to the increasing usage of modern digital navigation, sonars and radars. Growing marine trade activities are also creating growth in this market.
Per a Future Market Insights report, the global marine electronics market is expected to hit $5.2 billion in 2029, witnessing a CAGR of 5.3% between 2022 and 2029.
Further, the said market is likely to reach $1.42 billion by 2025, seeing a CAGR of 5.04% from 2021 to 2025, according to a Technavio report.
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 Avnet AVT, Aspen Technology AZPN and Amdocs DOX. While Avnet and Aspen technology sport a Zacks Rank #1 (Strong Buy), Amdocs carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Avnet has gained 8.9% in the year-to-date period. The long-term earnings growth rate for AVT is currently projected at 37.2%.
Aspen technology has returned 21.7% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 18.4%.
Amdocs has gained 5.6% in the year-to-date period. The long-term earnings growth rate for DOX is currently projected at 10%.
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