Trimble is shifting focus to higher-margin software and services, with AI aiding its growth. The company’s stock, undervalued compared to peers, stands to benefit from recurring revenue. Trimble’s hardware roots remain, but its future lies in connecting physical and digital worlds for efficient project management and cost savings.

The company’s software, enhanced by AI, aims to streamline workflows and provide actionable insights. Trimble’s emphasis on recurring revenue growth is expected to boost profit margins and cash flow, with a projected increase to $1 billion by 2027. The company’s potential for growth could lead to a significant increase in its market cap.

Trimble’s stock, currently trading at a discount, could see a 31.4% increase based on its FCF multiple by 2027. The company’s growth opportunities and margin expansion justify a premium valuation relative to peers. Investors should consider the potential for significant returns in the coming years and explore alternative stocks for investment opportunities.

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