Garmin (GRMN) Bolsters Fitness Segment With HRM-Pro Plus Strap – July 18, 2022

Garmin (GRMN Free Report) is consistently working toward expanding its fitness offerings on the back of product introductions.

This is evident from its latest introduction of a premium heart rate strap named HRM-Pro Plus which helps athletes keep track of pace and distance during indoor runs, thereby improving their performance.

HRM-Pro Plus is equipped with ANT+ and BLUETOOTH Low Energy technology, which helps it transmit accurate, real-time heart rate and performance data to various Garmin devices, including smartwatches and Edge cycling computers, and other compatible fitness devices.

With this launch, Garmin aims to provide an enhanced fitness experience to athletes.

This, in turn, is expected to boost the adoption rate of the heart rate strap among athletes.

Growing Fitness Offerings

Apart from the HRM-Pro Plus heart rate strap, Garmin released Edge Explore 2 and Edge Explore 2 Power Mount Bundle GPS cycling computers, featuring improved battery life and high-contrast maps of popular roads and high-traffic areas to avoid, thus guiding cyclists to take a more convenient option.

Last month, GRMN unveiled the Edge 1040 Solar, which features solar-charging capability and multi-band GNSS technology, for cyclists to ride confidently on challenging roads.

In May, Garmin introduced the Varia RCT715 rearview radar, featuring camera and tail light. The device aims to provide cyclists with enhanced visibility of approaching vehicles during a ride.

We note that the consistent introduction of fitness offerings continues to help Garmin gain momentum among athletes, cyclists and riders. This, in turn, will help GRMN drive the fitness segment’s performance.

The segment generated sales of $1.53 billion in 2021, accounting for 31% of total sales, increasing 16.5% year over year.

Strengthening performance of the fitness segment will further propel GRMN’s top-line growth and help it win investors’ confidence in the near term as well as in the long haul.

Shares of GRMN have been down 26.6% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 28.8%.

Efforts to Boost Prospects

Garmin’s constant efforts to introduce innovative sports and fitness solutions are helping it expand its presence in the booming fitness equipment market.

The underlined market has been witnessing significant growth of late owing to rising awareness among people to maintain a healthy lifestyle.

Increasing fitness awareness is leading to the growing uptake of fitness equipment like treadmills, stationary cycles, strength training equipment, et al, thereby creating growth in the fitness equipment market.

Per an Acumen Research and Consulting report, the said market is expected to hit $18.1 billion by 2030, witnessing a CAGR of 5.9% between 2022 and 2030.

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 Aspen Technology (AZPN Free Report), Analog Devices (ADI Free Report) and Agilent Technologies (HAS Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Aspen technology has returned 16.8% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 18.4%.

Analog Devices has lost 11% in the year-to-date period. ADI’s long-term earnings growth rate is currently projected at 12.3%.

Agilent Technologies has lost 26.1% in the year-to-date period. The long-term earnings growth rate for A is currently projected at 10%.

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