Positioning and workflow technology company, Trimble, is showing strong growth prospects for the future, making it an outstanding stock to buy now. Despite trading lower than earlier in the year, Trimble’s stock has seen a 34% increase in 2024 and a remarkable 75% increase over the past year. The company’s recent positive earnings report, which included an increase in full-year revenue and earnings margin guidance, has contributed to the stock’s rise.
One key metric to consider when evaluating Trimble is its annualized recurring revenue (ARR), which represents the annual run rate of its recurring revenue and is crucial for its free cash flow growth. Management expects ARR to grow by 11% to 13% for the full year, driven by the increasing adoption of higher-margin software and services offerings.
Trimble is focused on becoming an integral part of its customers’ daily workflows by helping them optimize operations using data captured by its technology. The company’s solutions bridge the gap between the digital and physical worlds, enabling customers to perform in line with data modeling and analysis.
Trimble’s growth in ARR is also attributed to its efforts to simplify the company and focus on core businesses where it competes best. By divesting non-core businesses and strategic partnerships, Trimble is strengthening its position in key markets.
With a growing software and services revenue, improving profit margins, and projections of increased free cash flow in the coming years, Trimble’s stock is considered highly attractive for growth investors. As the industrial sector continues to adopt data analytics and digital technology, Trimble has a promising pathway for continued growth.
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