Back to top

Image: Bigstock

Garmin (GRMN) Outperforms Broader Market: What You Need to Know

Read MoreHide Full Article

Garmin (GRMN - Free Report) ended the recent trading session at $240.48, demonstrating a +1.6% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, added 0.44%.

Coming into today, shares of the maker of personal navigation devices had lost 1.8% in the past month. In that same time, the Computer and Technology sector gained 7.68%, while the S&P 500 gained 2.72%.

The upcoming earnings release of Garmin will be of great interest to investors. It is anticipated that the company will report an EPS of $1.98, marking a 0.5% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.79 billion, up 12.84% from the year-ago period.

GRMN's full-year Zacks Consensus Estimates are calling for earnings of $8.09 per share and revenue of $7.07 billion. These results would represent year-over-year changes of +9.47% and +12.25%, respectively.

Any recent changes to analyst estimates for Garmin should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.31% upward. Garmin presently features a Zacks Rank of #2 (Buy).

Looking at its valuation, Garmin is holding a Forward P/E ratio of 29.27. This signifies a premium in comparison to the average Forward P/E of 19.59 for its industry.

We can also see that GRMN currently has a PEG ratio of 2.62. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Miscellaneous Products was holding an average PEG ratio of 1.82 at yesterday's closing price.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 31% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Garmin Ltd. (GRMN) - free report >>

Published in