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Westminster, Colorado-based Trimble Inc. (TRMB) is an original equipment manufacturer of positioning, surveying and machine control products. Valued at $16.9 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 touched its three-year high of $77.78 on Jan. 24 and is currently trading 12.6% below this peak. Meanwhile, TRMB has dipped 4.5% over the past three months, performing notably better than the Technology Select Sector SPDR Fund’s (XLK) 10.9% decline during the same time frame.
Trimble’s performance looks much more impressive over the longer time frame. TRMB has surged 10.3% over the past six months and 7.4% over the past 52 weeks, notably outpacing XLK’s 6% dip over the past six months and 1.3% uptick over the past year.
To confirm the bullish trend and recent downturn, TRMB has traded consistently above its 200-day moving average since mid-September 2024 and dropped below its 50-day moving average in mid-February.
TRMB stock observed a marginal uptick after the release of its impressive Q4 results on Feb. 19. The company observed a notable growth in recurring and organic revenues. Its overall revenues for the quarter increased 5.5% year-over-year to $983.4 million, exceeding the Street’s expectations. Trimble has continued to experience a higher contribution from subscriptions and services in its overall topline, this has led to notable margin expansions in the recent quarters. In Q4, the company’s gross margins expanded by a staggering 735 bps compared to the year-ago quarter to 69.3%, leading to a solid 18% year-over-year growth in gross profits to $681.2 million. Meanwhile, the company’s non-GAAP EPS soared 41.3% year-over-year to $0.89, which surpassed the analysts’ estimates by a notable margin.
Furthermore, Trimble significantly outperformed its peer Fortive Corporation’s (FTV) 5.8% dip over the past six months and 13.3% decline over the past year.
Among the 11 analysts covering the TRMB stock, the consensus rating is a “Strong Buy.” Its mean price target of $87.55 suggests a 28.8% upside potential from current price levels.
