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Garmin (GRMN) Expands Automotive Solutions With dezl OTR Series

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Garmin (GRMN - Free Report) is consistently working toward strengthening its automotive segment on the back of robust product introductions.

This is evident from the fact that the company recently released the dezl OTR series of trucking navigators.

The dezl OTR series features arrival planning with automatic birds-eye satellite imagery for high-resolution aerial views during truck entrances, security gates and loading dock destinations.

Additionally, the latest series of automotive products provide live traffic, weather and smart notifications when paired with the dezl app on smartphones.

With the dezl OTR series, Garmin aims to provide an enhanced driving experience to truck drivers. This is expected to help GRMN gain momentum among them which is likely to contribute to the top-line growth in the days ahead.

This, in turn, is expected to help Garmin win investors’ confidence in the near and long terms.

Shares of the company have been down 28.4% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 29% over the same timeframe.

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Effort to Boost Prospects

With the introduction of dezl OTR series, Garmin has expanded its presence in the booming automotive navigation systems market.

The market is witnessing significant growth owing to the increasing adoption of car GPS navigation system, rising demand for accurate navigation products and growing investments on automotive infrastructure.

Per a Market Research Future report, the underlined market is expected to be worth $43 billion by 2027, at a CAGR of 7% between 2021 and 2027.

Expanding Automotive Offerings

Along with the latest dezl OTR series, Garmin introduced the BC 50 and BC 50 with night vision wireless backup cameras to help drivers view the back of their vehicles and reverse confidently.

GRMN also unveiled the dezl Headset series featuring high-quality audio, active noise cancellation and battery life of up to 50 hours, to provide a better travel experience to drivers on the road.

In February, Garmin launched the Instinct 2 – dezl Edition smartwatch to help truck drivers keep track of their health while being on the road.

With the consistent increase in the number of automotive solutions, Garmin is bolstering its automotive segment, which has become an integral part of the company.

The automotive segment has generated sales of $138.3 million, accounting for 11.8% of total first-quarter 2022 revenues. Also, revenues were up 11% from the prior-year quarter.

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 - Free Report) Aspen Technology (AZPN - Free Report) and Amdocs (DOX - Free Report) . 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 risen 7.5% in the year-to-date period. The long-term earnings growth rate for AVT is currently projected at 37.2%.

Aspen technology has returned 26% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 18.4%.

Amdocs has risen 5% in the year-to-date period. The long-term earnings growth rate for DOX is currently projected at 10%.


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