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Why Garmin (GRMN) is a Strong Tech Stock to Buy

Benjamin Rains

Garmin GRMN is famous for its in-car GPS devices, fitness trackers, and smartwatches that compete against the likes of Apple AAPL, Fitbit FIT, and others. The company also sells a ton of other higher-end products from fish finders to radars for aviation and boating.

GRMN topped our Q3 estimates in October and raised its sales and EPS guidance. The company also introduced its new Autoland system that will “control and land the aircraft without human intervention” in the event of an emergency. Then on Monday, Garmin announced its new dual-lens “Dash Cam Tandem,” which could be a hit in the Uber UBER age.

Shares of GRMN have surged 23% in the past three months and 51% over the last year to crush its industry’s 36% average climb. The GPS firm’s jump makes its current 2.33% dividend yield all the more impressive.

Garmin is currently a Zacks Rank #1 (Strong Buy) and its industry rests in the top 10% of our more than 250 Zacks industries. Looking ahead, Garmin’s full-year 2019 sales are projected to jump 9.2% to reach $3.65 billion to help lift earnings by 13%.

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