U.S. markets open in 1 hour 7 minutes
  • S&P Futures

    +4.75 (+0.11%)
  • Dow Futures

    +19.00 (+0.06%)
  • Nasdaq Futures

    +45.75 (+0.33%)
  • Russell 2000 Futures

    +6.10 (+0.27%)
  • Crude Oil

    +1.03 (+1.71%)
  • Gold

    -1.60 (-0.09%)
  • Silver

    +0.02 (+0.07%)

    +0.0009 (+0.07%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    -1.20 (-7.10%)

    +0.0005 (+0.03%)

    -0.0960 (-0.09%)

    +1,551.11 (+2.47%)
  • CMC Crypto 200

    +89.68 (+6.93%)
  • FTSE 100

    +26.13 (+0.38%)
  • Nikkei 225

    -130.61 (-0.44%)

Garmin (GRMN) GFC 500 Autopilot Certification to Aid Aviation Unit

  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Garmin Ltd. GRMN is leaving no stone unturned to bolster the aviation business on the back of its robust autonomous flight solutions.

The company’s GFC 500 digital autopilot received Supplemental Type Certificate (“STC”) from Federal Aviation Administration (“FAA”) for use in Socata TB 20 and TB 21 aircraft. This approval is a testament to the company’s focus on strengthening the aviation portfolio.

Notably, GFC 500 offers robust autopilot performance, strong reliability and advanced safety benefits.

Further, it features superior in-flight characteristics and self-monitoring capabilities, and comes with minimal maintenance needs.

It also features altitude pre-select, VNAV2, and altitude hold, vertical speed and heading modes.

We note that the latest certification highlights the reliability of Garmin’s aviation technology.

Garmin Ltd. Price and Consensus

Garmin Ltd. Price and Consensus
Garmin Ltd. Price and Consensus

Garmin Ltd. price-consensus-chart | Garmin Ltd. Quote

Growing Certifications

The company’s aviation business is likely to benefit from the above-mentioned certification.

Apart from the latest certification, its GFC 600 digital autopilot received STC from FAA for use in Beechcraft King Air C90 aircraft and E90 aircraft.

Further, GFC 500 Autopilot received STC from FAA for use in the Cessna 172RG and Mooney M20 (C to G models) aircraft.

Further, the G1000 NXi upgrade received certification for use in the Prodigy Flight Deck-equipped Embraer Phenom 300 business jet.

Further, the company’s Garmin Autoland received certification from FAA and European Aviation Safety Agency for use in Daher TBM 940 business jet.

Aviation in Focus

We believe that the latest certification will drive the company’s top line, which has been gaining from the well-performing aviation business.

Moreover, Garmin’s aviation business unit is likely to witness growth with the increasing adoption of Autoland. This, in turn, will drive the segment’s revenue growth.

Moreover, the company’s family of autonomous safety solutions— Garmin Autonomi, which comprises Emergency Descent Mode and Electronic Stability and Protection, and Autoland—has emerged as a key catalyst of its aviation business.

Apart from this, strengthening flight display and deck offerings by Garmin remain noteworthy.

Further, the company’s aviation business remains robust with its solutions remaining popular at both OEM and aftermarket customers.

Zacks Rank & Stocks to Consider

Currently, Garmin carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Microchip Technology MCHP, Analog Devices ADI and Agilent Technologies A. All three companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rates for Microchip, Analog Devices and Agilent Technologies are currently pegged at 15.47%, 12.35% and 9%, respectively.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report

Analog Devices, Inc. (ADI) : Free Stock Analysis Report

Garmin Ltd. (GRMN) : Free Stock Analysis Report

Agilent Technologies, Inc. (A) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research