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Garmin (GRMN) Rises But Trails Market: What Investors Should Know

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In the latest trading session, Garmin (GRMN - Free Report) closed at $182.76, marking a +0.01% move from the previous day. This move lagged the S&P 500's daily gain of 0.75%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 1%.

Shares of the maker of personal navigation devices have appreciated by 7.49% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.48% and the S&P 500's gain of 4.03%.

Investors will be eagerly watching for the performance of Garmin in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.45, marking a 2.84% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.43 billion, up 12.14% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.05 per share and revenue of $5.97 billion, which would represent changes of +8.23% and +14.11%, respectively, from the prior year.

It is also important to note the recent changes 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 company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.27% lower. Currently, Garmin is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Garmin is holding a Forward P/E ratio of 30.2. For comparison, its industry has an average Forward P/E of 19.52, which means Garmin is trading at a premium to the group.

We can also see that GRMN currently has a PEG ratio of 3.16. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Miscellaneous Products was holding an average PEG ratio of 2.12 at yesterday's closing price.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 42% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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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