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Trimble Inc. (TRMB) is a leading original equipment manufacturer specializing in positioning, surveying, and machine control products, with a market cap of $14.3 billion. Based in Westminster, Colorado, the company integrates advanced positioning technologies with wireless communications and software solutions across multiple industries.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and Trimble fits this criterion perfectly. Trimble stands out in the market for its ability to provide end-to-end solutions that combine hardware and software, facilitating seamless workflows and enhanced productivity in complex projects.
However, despite its strong market position, the GPS manufacturer is down 10.7% from its 52-week high of $65.55, reached in March. Over the past three months, the stock has risen 4.3%, outperforming the broader Nasdaq Composite's ($NASX) 1.6% returns in the same period.
Nevertheless, longer term, TRMB has increased 10.1% on a YTD basis, lagging behind NASX's 19.7% gains. Moreover, TRMB’s shares have returned 16.6% over the past 52 weeks, compared to NASX's 36.1% gains over the same time frame.
Yet, TRMB has been trading above its 50-day and 200-day moving averages since early September.
Trimble has underperformed over the past year primarily due to market volatility, supply chain disruptions, and slower-than-expected recovery in key sectors such as construction and agriculture. However, the stock rose 3.4% on Aug. 6 after the company's better-than-expected Q2 adjusted EPS of $0.62 and revenue of $870.8 million. The strong demand for its subscription plans and software solutions, particularly in the construction industry, coupled with an upward revision of its annual revenue and profit forecasts, further boosted investor confidence.
In comparison, rival TTEC Holdings, Inc. (TTEC) has significantly underperformed TRMB, declining 84.7% over the past 52 weeks and 81.5% on a YTD basis.
Despite TRMB’s underperformance over the past year, analysts are moderately optimistic, with a consensus rating of "Moderate Buy" from 12 analysts. The mean price target of $65.62 suggests a 12% upside potential from current levels.
On the date of publication, Sohini Mondal 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.
