Trimble TRMB recently introduced a solutions-as-a-service program by making its remote monitoring IoT hardware and software solutions available for water and wastewater utilities.
Notably, the services under the program are powered by the company’s Telog family of IoT remote monitoring hardware, and the Trimble Unity Remote Monitoring cloud and mobile software.
Further, the program offers training, periodic system operating reviews, support and technology assurance while helping the water and wastewater utilities remotely monitor their critical infrastructure.
The new program, which is a subscription based one, enables the creation of tailored subscription service bundles. This will help in addressing the needs of customers by providing flexibility in specific projects and supporting resiliency programs.
Additionally, the program aids in reduction of upfront investment by providing a predictable annual subscription. This is crucial for the utilities as the program prevents them from adopting the traditional method of purchasing equipment and software, which require heavy upfront investment to begin a project.
We believe the latest move will help Trimble in delivering enhanced experience to the utility customers. Moreover, the budget friendly program is likely to witness strong adoption rate in the near term, thus driving the top line.
Resources and Utilities to Grow
We note that the latest move bodes well for the company’s strong efforts toward expanding its Resources and Utilities segment, which primarily caters to the agricultural market by serving customers engaged in forestry, utilities and agriculture.
Apart from the latest move, the company’s acquisition of Azteca Systems (does business under the name of Cityworks), which offers robust office, cloud and mobile enterprise asset management (EAM) software solutions, remains noteworthy in this regard.
Notably, the buyout has bolstered Trimble’s capabilities in the EAM space. Further, Cityworks’ EAM software is strengthening the company’s utilities and local government capabilities. This, in turn, will drive growth in this particular segment.
We believe the above mentioned endeavours will continue to drive the segment’s top line. Notably, Resources and Utilities generated $180.3 million (22.7% of total revenues) in first-quarter 2020, up 13% year over year.
Trimble Inc. Revenue (TTM)
Trimble Inc. revenue-ttm | Trimble Inc. Quote
The latest move expands Trimble’s product and services portfolio, which has been acting as a key element in shaping its growth trajectory.
Apart from the latest launch, the company recently unveiled new capabilities for its Community Load Match platform jointly with Kuebix. These capabilities will help shippers to find carriers for their truckload shipments seamlessly. This has expanded the company’s transportation solutions offerings.
Further, it has rolled out an automatic screed control system — Roadworks 2D Paving Control Platform — for asphalt pavers, which allows paving contractors to minimize waste of expensive asphalt material.
Additionally, the company has unveiled an optimized dispatch solution for the transportation industry called Trimble Dispatch Advisor.
We believe an expanding product portfolio will continue to drive Trimble’s business growth.
Zacks Rank & Stocks to Consider
Currently, Trimble carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Inphi Corporation IPHI, Advanced Semiconductor Engineering, Inc. ASX and CEVA, Inc. CEVA, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term expected earnings growth rate for Inphi, Advanced Semiconductor Engineering and CEVA is currently pegged at 37.66%, 26.63% and 20%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Trimble Inc. (TRMB) : Free Stock Analysis Report
Advanced Semiconductor Engineering, Inc. (ASX) : Free Stock Analysis Report
CEVA, Inc. (CEVA) : Free Stock Analysis Report
Inphi Corporation (IPHI) : Free Stock Analysis Report
To read this article on Zacks.com click here.