Westminster, Colorado-based Trimble Inc. (TRMB) is an original equipment manufacturer of positioning, surveying and machine control products. Valued at $17.6 billion by a market cap, Trimble amalgamates physical and digital worlds through hardware, software and services across agriculture, construction, geospatial and transportation.
Companies worth $10 billion or more are generally described as “large-cap stocks,” Trimble fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the scientific & technical instruments industry. Its solutions enable customers to work in new ways to measure, build, grow and move goods for a better quality of life.
Trimble recently touched its two-year high of $76.97 on Dec. 4 and is currently trading 6.6% below that peak. TRMB stock soared 22.8% over the past three months, significantly outperforming the Dow Jones Industrials Average’s ($DOWI) 2.6% gains during the same time frame.
Over the longer term, Trimble’s performance looks even more appealing. TRMB has surged over 28% in the past six months and 37.1% over the past year, outpacing DOWI’s 9.9% gains over the past six months and 15.8% returns over the past year.
To confirm the bullish trend, TRMB has traded mostly above its 200-day moving average since mid-February with some fluctuations and consistently above its 50-day moving average since mid-September.
TRMB stock prices soared 17.9% after the release of its better-than-expected Q3 results on Nov. 6. Trimble demonstrated its focused approach towards execution and growth with the announcement of Mobility divestiture, which will further simplify and improve the focus of the company’s business. Moreover, it observed a robust 3.5% gross margin expansion with its adjusted non-GAAP gross margins reaching a record 68.5%.
Although its total revenues declined 8.5% compared to the year-ago quarter to $875.8 million due to a decrease in product sales, its revenues were up 3% on an organic basis and exceeded Wall Street’s topline expectations by a modest 1.1%. Moreover, its adjusted EPS of $0.70 also surpassed analysts’ estimates by a large margin, bolstering investor confidence.
Trimble has significantly outperformed its peer Fortive Corporation’s (FTV) 1% gains over the past six months and 2.9% returns over the past year.
Among the 12 analysts covering the TRMB stock, the consensus rating is a “Strong Buy.” Its mean price target of $87.05 indicates a staggering 21.1% upside potential from the current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart
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