Garmin Ltd.’s (NASDAQ:GRMN) unit, Garmin International Inc. recently introduced a multisport GPS smartwatch — tactix Delta — for outdoor enthusiasts and professionals in a bid to expand in the outdoor segment.
Tactix Delta comes with new and enhanced capabilities, and a great battery life. The device has a 1.4-inch display size and on-device music storage, allowing the user to download up to 2,000 songs. In addition, this fourth-generation tactix smartwatch takes care of users’ privacy by not sharing their location and erasing all memory.
Furthermore, the device is equipped with topographic mapping and advanced navigation features that include a barometric altimeter, compass and multiple Global Navigation Satellite Systems support. Its PacePro feature keeps a runner’s pacing strategy on track with grade-adjusted guidance.
The new device will help Garmin to further expand its share in the outdoor segment. In addition, the latest effort will enable Garmin to fend off competition from players like Fitbit (NYSE:FIT) , Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) , among others.
Garmin Poised to Gain From Smart Wearable Market
Per a report from ResearchandMarkets, the global smart wearable market is expected to witness a CAGR of 19.4% between 2019 and 2024. Notably, smartwatches make up the most crucial segment of the market.
Garmin is poised to gain in this space, courtesy of its Watch family. Its Fenix smartwatches are especially designed for outdoor adventurers and athletes. These watches are capable of providing valuable statistics for outdoor activities, thereby increasing the adoption rate of Garmin’s new multisport watches.
Last year, the company had rolled out smartwatches that expanded its share in the fitness segment as well. The company unveiled vivoactive 4 and 4S GPS smartwatches, which feature advanced sleep tracking, respiration tracking, Body Battery energy monitoring, women cycle tracking, stress tracking with relax reminders, as well as hydration tracking. These watches provide abnormal heartrate alerts.
With these new releases, Garmin is poised to benefit from strong growth in the smartwatch segment.
Garmin Ltd. Price and Consensus
Bottom Line
Worldwide provider of navigation, communications and information devices, Garmin has been making efforts to increase its share in all the markets served by the company, backed by new products and upgrades to the existing ones. It is experiencing notable success in all segments because of many newly added technologies that are gradually expanding and enabling the company to enter new categories.
The latest launch will help the company expand its market share in the Outdoor segment, which focuses on developing technologies and innovations to enhance users’ outdoor experiences. In the last reported quarter, the Outdoor segment was up 23% year over year, primarily driven by robust demand for Garmin’s adventure watches.
The company’s new multisport GPS smartwatch should continue to drive sales all through this year.
Zacks Rank
Currently, Garmin carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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