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Garmin (GRMN) Suffers a Larger Drop Than the General Market: Key Insights

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Garmin (GRMN - Free Report) ended the recent trading session at $169.87, demonstrating a -1% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.31%.

Heading into today, shares of the maker of personal navigation devices had lost 2.78% over the past month, lagging the Computer and Technology sector's loss of 1.17% and the S&P 500's gain of 1.57% in that time.

Investors will be eagerly watching for the performance of Garmin in its upcoming earnings disclosure. On that day, Garmin is projected to report earnings of $1.45 per share, which would represent year-over-year growth of 2.84%. Meanwhile, our latest consensus estimate is calling for revenue of $1.43 billion, up 12.14% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $6.05 per share and a revenue of $5.97 billion, demonstrating changes of +8.23% and +14.11%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Garmin. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Garmin currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Garmin is presently being traded at a Forward P/E ratio of 28.36. Its industry sports an average Forward P/E of 17.98, so one might conclude that Garmin is trading at a premium comparatively.

Meanwhile, GRMN's PEG ratio is currently 2.97. 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. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 2.14.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 36% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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