- Oops!Something went wrong.Please try again later.
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Garmin (GRMN) ten years ago? It may not have been easy to hold on to GRMN for all that time, but if you did, how much would your investment be worth today?
Garmin's Business In-Depth
With that in mind, let's take a look at Garmin's main business drivers.
Olathe, Kansas-based, Garmin, Ltd. is an original equipment manufacturer (OEM) of navigation and communication equipment that incorporate the global positioning system (GPS)-based technology.
The company’s diverse portfolio of handheld, portable and fixed-mount GPS-enabled devices provides geographical location and navigation data using the GPS satellite system
Garmin reported revenues of $4.2 billion in 2020. The company report operations under five segments—Outdoor, Fitness, Marine, Auto and Aviation, which generated 27%, 31%, 14%, 16% and 26% of revenues, respectively.
Outdoor products currently include handhelds, wearables, golfing devices, dog tracking/training devices and action cameras. The Fitness segment offers running and cycling products of various kinds and includes platforms for connecting and sharing data with others. Marine products include chartplotters, fishfinders, sounders, autopilot systems, radars, instruments, radios, handhelds and wrist-worn devices, sailing and entertainment products. Auto offers personal navigation devices (PNDs), infotainment solutions and mobile applications. Aviation offers integrated avionics or flight decks; panel mounted navigation, traffic, audio, transponder, weather and other products; portable and wearable solutions; and mobile apps.
Products are manufactured at its Xizhi, Jhongli and LinKou facilities in Taiwan, its Yangzhou facility in China and its Olathe, Kansas and Salem, Oregon facilities in the U.S. They are sold through a big network of independent dealers across 100 countries globally.
Garmin products are distributed through a hybrid sales channel system that utilizes a network of distributors and retailers. They are also sold directly to OEMs that integrate the GPS capability into their end product.
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Garmin ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in July 2011 would be worth $4,536.62, or a 353.66% gain, as of July 13, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 233.78% and the price of gold went up 10.62% over the same time frame.
Going forward, analysts are expecting more upside for GRMN.
Garmin is benefiting from solid momentum across the Fitness and Outdoor segments owing to growing demand for advanced wearables and adventure watches. Also, benefits from Tacx buyout are tailwinds. Furthermore, well-performing Marine segment owing to robust chartplotters, remains a major positives. Solid adoption of advanced sonars is also contributing well. Additionally, strong momentum across specialty categories and new OEM programs is another positive. Garmin’s strong focus on continued innovation, diversification and market expansion to explore growth opportunities in all its segments remains a tailwind. The stock has outperformed its industry on a year-to-date basis. However, weak personal navigation device market remains a headwind. Further sluggishness in the aviation segment owing to weak performing ADS-B product line is an overhang.
Over the past four weeks, shares have rallied 5.05%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Garmin Ltd. (GRMN) : Free Stock Analysis Report
To read this article on Zacks.com click here.