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Garmin (GRMN) Stock Sinks As Market Gains: What You Should Know

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Garmin (GRMN - Free Report) closed the most recent trading day at $116.57, moving -0.21% from the previous trading session. This change lagged the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.19%.

Prior to today's trading, shares of the maker of personal navigation devices had gained 5.81% over the past month. This has outpaced the Computer and Technology sector's gain of 4.34% and the S&P 500's gain of 5.51% in that time.

Wall Street will be looking for positivity from Garmin as it approaches its next earnings report date. In that report, analysts expect Garmin to post earnings of $1.10 per share. This would mark a year-over-year decline of 6.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.14 billion, up 5.86% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.99 per share and revenue of $5.48 billion, which would represent changes of +2.92% and +10.04%, respectively, from the prior year.

Any recent changes to analyst estimates for Garmin should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.31% higher. Garmin is currently a Zacks Rank #4 (Sell).

Digging into valuation, Garmin currently has a Forward P/E ratio of 19.5. This valuation marks a premium compared to its industry's average Forward P/E of 17.02.

Also, we should mention that GRMN has a PEG ratio of 2.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GRMN's industry had an average PEG ratio of 1.74 as of yesterday's close.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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