Trimble Inc. Stock Shows Strong Performance Amid Industry Dynamics
Westminster, Colorado-based Trimble Inc. (TRMB) is a manufacturer of positioning, surveying, and machine control products. With a market cap of $17.6 billion, Trimble integrates physical and digital technologies through hardware, software, and services across sectors like agriculture, construction, geospatial, and transportation.
Trimble’s Standing in the Market
Companies valued at $10 billion or more are classified as “large-cap stocks.” Trimble, with a market cap surpassing this mark, holds a significant position in the scientific and technical instruments industry. Its solutions empower customers to enhance their methods of measuring, building, growing, and transporting goods, aiming for improved quality of life.
Recent Stock Performance
On December 4, Trimble’s stock reached a two-year high of $76.97 but is currently trading 6.6% below that peak. Over the past three months, TRMB stock rose by 22.8%, outpacing the Dow Jones Industrials Average ($DOWI), which gained only 2.6% in the same period.
Long-Term Growth Trajectory
Trimble’s long-term performance is also impressive. The stock surged over 28% in the past six months and 37.1% over the past year, standing in stark contrast to the DOWI’s gains of 9.9% and 15.8% in their respective time frames.
Technical Analysis Supports Upward Trend
Confirming a bullish trend, TRMB stock has mostly traded above its 200-day moving average since mid-February, with only minor fluctuations. Moreover, it has consistently remained above its 50-day moving average since mid-September.
Encouraging Q3 Results
Following the release of better-than-expected Q3 results on November 6, TRMB stock jumped 17.9%. Trimble showcased its commitment to growth and streamlined operations through its Mobility divestiture. The company achieved a notable 3.5% gross margin improvement, with adjusted non-GAAP gross margins hitting a record 68.5%.
Despite an 8.5% year-over-year decline in total revenues, which totaled $875.8 million due to reduced product sales, organic revenue grew by 3%. This exceeded Wall Street’s expectations by 1.1%. The adjusted EPS of $0.70 also outperformed analysts’ forecasts, enhancing investor confidence.
Comparison with Peers
Trimble’s performance has notably overshadowed that of peer Fortive Corporation (FTV), which only saw a 1% increase over the past six months and 2.9% over the past year.
Among 12 analysts tracking TRMB, the consensus rating is a “Strong Buy.” The average price target stands at $87.05, indicating a potential upside of 21.1% from current trading levels.
On the date of publication, Aditya Sarawgi did not hold positions in any of the securities mentioned in this article. All information is for informational purposes only. For more details, please review the Barchart Disclosure Policy here.
The views and opinions expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.
