Sensata Technologies Holding N.V. (ST), Trimble Navigation Limited (TRMB), Garmin Ltd. (GRMN): Innovate or Die, 3 Companies at the Cutting Edge in Scientific and Technical Instruments

Beating peers with innovation

Garmin Ltd. (NASDAQ:GRMN) launched Moterra in June 2013, an outdoor GPS device which, unlike many other GPS devices, runs Android apps. It facilitates easier navigation and runs on both rechargeable and single-use AA batteries, which is a boon for hikers, skiers and other adventurers. Moterra is scheduled to hit the market in the third quarter of this year, at a price of $649.99. This product will strengthen Garmin Ltd. (NASDAQ:GRMN)’s outdoor segment, which also has products for hunters, golfers, and for applications like geocaching. This segment is expected to generate $435.9 million in revenue in 2013, up 8.5% year over year.

Garmin Ltd. (NASDAQ:GRMN)’s fitness segment generated revenue of $71.2 million in the first quarter of 2013 riding on strong demand for its Forerunner 10 and Forerunner 210 products. The company will likely launch a pedal-based power meter called Vector, a device that measures power data reliably and accurately for cyclists, in the third quarter of 2013. Garmin believes that this product will be highly successful with cyclists, and expects that Vector, along with its Forerunner 10 and Forerunner 210, will improve sales in its fitness segment. The fitness segment is forecast to generate revenue of around $368 million in the next year as compared to $321 million in the last year.

Conclusion

Sensata will benefit from potential growth in its automotive and controls segment.

Trimble Navigation Limited (NASDAQ:TRMB) has significant growth potential in precision agriculture products. Big data analytics infrastructure will help the company improve gross margins.

Moterra’s unique features will be beneficial to people engaging in adventurous activities. Vector is likely to expand Garmin Ltd. (NASDAQ:GRMN)’s addressable market.

All three stocks are a buy.

Madhukar Dubey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Innovate or Die: 3 Companies at the Cutting Edge in Scientific and Technical Instruments originally appeared on Fool.com and is written by Madhukar Dubey.

Madhu is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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