Garmin shares rallied 17% to their highest level in 11 years as demand for watches from outdoor enthusiasts helped fourth-quarter earnings beat the highest estimates.

“Their smart wearable business is on fire,” Tigress Financial Partners chief investment officer Ivan Feinseth said in a phone interview. “They are becoming a leader in fitness wearables.”

Revenue from Garmin’s outdoor segment increased 25% in the quarter “with significant contributions from adventure watches”, the company said in a statement on Wednesday. Garmin forecast 2019 revenue of about US$3.5-billion, surpassing the $3.43-billion average estimate of analysts surveyed by Bloomberg. The consumer electronics maker also highlighted the launch of new products including Descent, a watch for divers.

Garmin shares have long been undervalued by the Street, according to Feinseth. “This move is well deserved.”

Competitors also rose after the report, with Fitbit increasing as much as 3.8%, Fossil Group adding as much as 2%.

Feinseth is also bullish on Garmin’s announcement last week that it will buy Tacx, a closely held Dutch company that makes indoor bike trainers. Feinseth called it an “incredible acquisition” and sees the combination of Tacx and Garmin’s fitness-tracking technology as a “serious competitor to Peloton”. — Reported by Natasha Rausch, (c) 2019 Bloomberg LP