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Garmin (GRMN) Outpaces Stock Market Gains: What You Should Know

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Garmin (GRMN) closed the most recent trading day at $93.47, moving +0.74% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.22%.

Coming into today, shares of the maker of personal navigation devices had lost 7.13% in the past month. In that same time, the Computer and Technology sector lost 9.55%, while the S&P 500 lost 10.02%.

Investors will be hoping for strength from Garmin as it approaches its next earnings release. In that report, analysts expect Garmin to post earnings of $1.40 per share. This would mark a year-over-year decline of 16.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.35 billion, up 1.41% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.90 per share and revenue of $5.45 billion. These totals would mark changes of +1.37% and +9.4%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Garmin. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Garmin is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Garmin currently has a Forward P/E ratio of 15.84. This represents a premium compared to its industry's average Forward P/E of 14.97.

Also, we should mention that GRMN has a PEG ratio of 2.83. 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. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 1.68 as of yesterday's close.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow GRMN in the coming trading sessions, be sure to utilize Zacks.com.


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