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Garmin (GRMN) Dips More Than Broader Markets: What You Should Know

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Garmin (GRMN - Free Report) closed the most recent trading day at $117.04, moving -1.44% from the previous trading session. This change lagged the S&P 500's daily loss of 1.26%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq lost 0.28%.

Prior to today's trading, shares of the maker of personal navigation devices had gained 9.31% over the past month. This has outpaced the Computer and Technology sector's gain of 8.72% and the S&P 500's gain of 6.07% in that time.

Wall Street will be looking for positivity from Garmin as it approaches its next earnings report date. This is expected to be April 27, 2022. The company is expected to report EPS of $1.10, down 6.78% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.14 billion, up 5.86% from the year-ago period.

GRMN's full-year Zacks Consensus Estimates are calling for earnings of $5.99 per share and revenue of $5.48 billion. These results would represent year-over-year changes of +2.92% and +10.04%, respectively.

Any recent changes to analyst estimates for Garmin should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.31% higher within the past month. Garmin is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Garmin is holding a Forward P/E ratio of 19.83. Its industry sports an average Forward P/E of 16.73, so we one might conclude that Garmin is trading at a premium comparatively.

It is also worth noting that GRMN currently has a PEG ratio of 2.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 1.72 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 190, putting it in the bottom 25% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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