How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Garmin (
GRMN Quick Quote GRMN - Free Report) ten years ago? It may not have been easy to hold on to GRMN for all that time, but if you did, how much would your investment be worth today? Garmin's Business In-Depth
With that in mind, let's take a look at Garmin's main business drivers.
Olathe, Kansas-based, Garmin, Ltd. is an original equipment manufacturer (OEM) of navigation and communication equipment that incorporate the global positioning system (GPS)-based technology.
The company’s diverse portfolio of handheld, portable and fixed-mount GPS-enabled devices provides geographical location and navigation data using the GPS satellite system Garmin reported revenues of $4.2 billion in 2020. The company report operations under five segments—Outdoor, Fitness, Marine, Auto and Aviation, which generated 27%, 31%, 14%, 16% and 26% of revenues, respectively.
Outdoor products currently include handhelds, wearables, golfing devices, dog tracking/training devices and action cameras. The Fitness segment offers running and cycling products of various kinds and includes platforms for connecting and sharing data with others. Marine products include chartplotters, fishfinders, sounders, autopilot systems, radars, instruments, radios, handhelds and wrist-worn devices, sailing and entertainment products. Auto offers personal navigation devices (PNDs), infotainment solutions and mobile applications. Aviation offers integrated avionics or flight decks; panel mounted navigation, traffic, audio, transponder, weather and other products; portable and wearable solutions; and mobile apps.
Products are manufactured at its Xizhi, Jhongli and LinKou facilities in Taiwan, its Yangzhou facility in China and its Olathe, Kansas and Salem, Oregon facilities in the U.S. They are sold through a big network of independent dealers across 100 countries globally.
Garmin products are distributed through a hybrid sales channel system that utilizes a network of distributors and retailers. They are also sold directly to OEMs that integrate the GPS capability into their end product. 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 Garmin a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in August 2011 would be worth $5,331.61, or a gain of 433.16%, as of August 19, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 285.77% and the price of gold went up -7.14% over the same time frame.
Analysts are anticipating more upside for GRMN.
Garmin reported strong second-quarter results wherein both earnings and revenues grew year over year. Strong performance of fitness, outdoor, auto, aviation and marine segments drove the top-line growth. Growing demand for advanced wearables, adventure watches and cycling products remained a positive. Further, solid adoption of Chartplotters contributed well. Also, strengthening momentum across specialty categories and new OEM programs was another positive. Garmin’s strong focus on continued innovation, diversification and market expansion to explore growth opportunities in all its segments remains a tailwind. Notably, the stock has outperformed the industry it belongs to on a year–to-date basis. However, weak personal navigation device market remains a major headwind. Further, uncertainties related to ongoing pandemic remain overhangs.
The stock has jumped 8.34% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2021; the consensus estimate has moved up as well.