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Garmin (GRMN) Increases Yet Falls Behind Market: What Investors Need to Know

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Garmin (GRMN - Free Report) closed the latest trading day at $208.77, indicating a +1.04% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 1.08%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.41%.

Shares of the maker of personal navigation devices witnessed a loss of 3.79% over the previous month, beating the performance of the Computer and Technology sector with its loss of 13.17% and the S&P 500's loss of 8.26%.

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 $1.62 per share, which would represent year-over-year growth of 14.08%. Meanwhile, our latest consensus estimate is calling for revenue of $1.55 billion, up 11.95% from the prior-year quarter.

GRMN's full-year Zacks Consensus Estimates are calling for earnings of $8.25 per share and revenue of $6.87 billion. These results would represent year-over-year changes of +11.64% and +9.09%, 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.41% higher within the past month. Currently, Garmin is carrying a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Garmin is currently exchanging hands at a Forward P/E ratio of 25.05. This valuation marks a premium compared to its industry's average Forward P/E of 19.45.

Investors should also note that GRMN has a PEG ratio of 1.16 right now. 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 had an average PEG ratio of 1.44 as trading concluded yesterday.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 40% of all industries, numbering over 250.

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.

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


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