A comeback for the books…
This stock was a trailblazer in the early 2000s – and it’s trying to do it again.
I want to take you back to the day where your cellphone wasn’t right in your pocket. You kept a map in your console on long drives. And the day you got a GPS was a day to be celebrated; no more folded up maps, printed out directions, or taking the wrong turn. Your GPS told you exactly where you needed to go.
And there was no question about who the top dog of the industry was – Garmin.
In the 1990s to 2008, Garmin was a rising star in consumer electronics – finding its place on car dashboards and hikers’ backpacks. It was a name everyone knew – until the era of GPS-enabled smartphones hit the market. And that makes sense that these cell phones could simply just deliver things the GPS couldn’t – like up to date traffic information.
Where’s the money?
Garmin’s revenue hit an all-time high back in 2008, ringing in at $3.5 billion. And investors ate it up, rushing into the market to grab their piece. But that euphoria quickly dissipated, and by 2009, revenue had fallen to $2.9 billion amidst an economy plagued by a recession. But even when the economy bounced back, the Garmin dashboard GPS business didn’t.
But the company wasn’t giving up.
And in 2015, Garmin decided to shift its focus to the more niches uses for its technology. And the two significant areas of focus and growth have been fitness and outdoors. They did this by developing smartwatches created for the modern-day athlete, including seasoned climbers and marathon runners. These watches have continued to be increasingly popular, even as the market becomes more and more saturated.
For instance, when looking at data from runners uploads from major marathons, like New York, Boston, and events in Europe – more than 70% of participants were using a watch made by Garmin. And the stock reflects an optimistic outlook. Over the last 12 months, Garmin shares have moved up 13%, and it looks like the company is finally seeing the results it’s been hoping for.
Here’s what I think about it…
How do I get some?
What we see with Garmin reminds me a lot of what we’ve seen with Walmart and Target over the last few months. As you know, with Walmart, they’ve launched a program to deliver your items the same day, built out an incredible app, and are looking forward to bringing even more perks your way. They’ve revamped their business to fit the current market needs. And that’s exactly what Garmin is doing as well.
This shift has been incredible for its business and stock. And I think other companies should be taking notes because with the way the world is changing – even the most established names will have to get comfortable fitting what the consumer needs.
So, for me, when I look at Garmin – I see innovation – which is precisely what I’m currently looking for. And that’s why I’m looking to add Garmin to my lineup on any pullback I see. And I think you should too.
In the spotlight: Another TikTok update…
TikTok continues to avoid the heavy hand of the United States government. Just last week, the video streaming app was set to be banned from the country, but a federal judge stepped in and ruled that you Washington couldn’t block it from the app store just yet.
But the fate of the app is still uncertain. The court ruling the judge enacted is only temporary, and it could be appealed, leading the ruling to be thrown out. Truthfully, the bad was set to go through, but TikTok contested it – and the company could quickly lose the court case.
But while many are pushing for the ban, TikTok’s Chinese owner, ByteDance, is pushing to close a deal with the Oracle and Walmart that might be enough to satisfy the current administration’s concerns about the app and ward off the “ban pressure” for good.
We’ve been watching the TikTok debacle unfold for weeks now – and no one can be sure what the outcome will be. But if we’ve learned anything, it’s that we shouldn’t be chasing every twist and turn of this current deal. So, as always, I will continue to observe from the sidelines and stick my trading plan – and I think you should too.
Rising to the Challenge
Garmin, Walmart, and Target are just three examples out of hundreds of businesses who’ve risen to the challenge of operating in a new world by adjusting their processes, products, or delivery methods.
More often than not, being presented with a challenge can be the perfect source of motivation…
And my colleague Tom Gentile just issued one that has me very excited.
I didn’t think it was possible, but Tom – the #1 pattern trader in America – believes he can help you multiply your investment by up to 10 times in just 4 months!
He calls it his “Regular to Riches” challenge, and asked me to let you know about it.
So click here to learn how to take Tom up on this incredible offer today.