Here's How Much You'd Have If You Invested $1000 in Trimble Navigation a Decade Ago
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Trimble Navigation (TRMB) ten years ago? It may not have been easy to hold on to TRMB for all that time, but if you did, how much would your investment be worth today?
Trimble Navigation's Business In-Depth
With that in mind, let's take a look at Trimble Navigation's main business drivers.
Based in Sunnyvale, CA, Trimble Inc. is an original equipment manufacturer (OEM) of positioning, surveying and machine control products. Its product portfolio is centered on the integration of real-time positioning or location technologies with wireless communications and software or information technologies.
The company leverages Global Positioning System (GPS), Global Navigation Satellite Systems (GNSS), augmentation systems and other systems based on optical and laser technologies, in order to provide real-time position.
Notably, Trimble generated $3.3 billion of revenues in 2020 from its four organized business segments.
Building and Infrastructure (39% of 2020 non-GAAP revenues) comprised of building construction, and civil engineering and construction businesses. End customers of this segment include surveyors, architects, engineers, contractors and operators.
Geospatial (21% of 2020 revenues) offers geographic information system (GIS), and survey product lines. The segment caters to the need of government, survey and engineering customers.
Resources and Utilities (20% of 2020 revenues) primarily caters to the agricultural market by serving the customers engaged in forestry, utilities and agriculture. The company’s offerings in the agriculture sector include information management solutions, guidance and positioning systems, automated and variable-rate application and technology systems.
Transportation (20% of 2020 revenues) segment serves the customers engaged in transportation, automotive, logistics and field service management activities. The company offers enterprise and mobility solutions for long-haul trucking industry. Further, it offers comprehensive fleet and transportation management, analytics, routing, mapping, reporting, and predictive modeling solutions for logistics market.
The company sells its products in over 100 countries through direct channels, joint ventures, representatives, dealers and other channels. Further, Trimble has manufacturing, logistics and development operation in countries like the United States, the U.K., Sweden, Germany, New Zealand, Canada, Finland, the Netherlands, China and India.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Trimble Navigation a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in June 2011 would be worth $3,913.87, or a gain of 291.39%, as of June 10, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 227.35% and the price of gold increased 18.59% over the same time frame in comparison.
Analysts are forecasting more upside for TRMB too.
Trimble continues to ride on well-performing segments. It is driven by strength in utilities and agriculture businesses. These businesses aided growth in the Resources and Utilities segment. Also, strong momentum across Geospatial segment remains a major positive. Further, the company benefits from positive contributions from strategic acquisitions of Viewpoint, e-Builder and SketchUp. Additionally, the company’s cost control strategies are expected to drive profitability in the near term. Further, the company’s acquisition strategy remains the key catalyst and is likely to continue driving its business growth. Notably, Trimble shares have outperformed the industry it belongs on a year-to-date basis. However, weakness in the overall demand environment on account of the coronavirus pandemic remains a major headwind.
The stock is up 5.85% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2021. The consensus estimate has moved up as well.
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