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

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Garmin (GRMN - Free Report) closed at $201.32 in the latest trading session, marking a -3.39% move from the prior day. This change lagged the S&P 500's daily loss of 1.13%. On the other hand, the Dow registered a loss of 1.79%, and the technology-centric Nasdaq decreased by 1.3%.

Coming into today, shares of the maker of personal navigation devices had gained 3.2% in the past month. In that same time, the Computer and Technology sector gained 7.36%, while the S&P 500 gained 3.55%.

Analysts and investors alike will be keeping a close eye on the performance of Garmin in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.95, marking a 23.42% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.73 billion, up 15.01% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.94 per share and revenue of $6.83 billion, which would represent changes of +7.44% and +8.48%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Garmin. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.9% higher. Currently, Garmin is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Garmin has a Forward P/E ratio of 26.26 right now. This represents a premium compared to its industry average Forward P/E of 18.93.

One should further note that GRMN currently holds a PEG ratio of 2.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Electronics - Miscellaneous Products industry stood at 1.69 at the close of the market yesterday.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 153, finds itself in the bottom 38% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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