77.30 0.00 (0.00%)
After hours: 4:43PM EDT
|Bid||76.94 x 2200|
|Ask||80.00 x 800|
|Day's Range||76.08 - 77.31|
|52 Week Range||59.39 - 89.72|
|Beta (3Y Monthly)||1.20|
|PE Ratio (TTM)||20.79|
|Earnings Date||Jul 30, 2019 - Aug 5, 2019|
|Forward Dividend & Yield||2.28 (2.66%)|
|1y Target Est||79.20|
With GPS now a basic cell phone feature , and more vehicles rolling off the production lines with built-in satnav systems, the role of standalone satellite-navigation devices is diminishing. Why have an extra bit of kit in your car that needs additional maintenance? But Garmin thinks there's still a place for them, particularly in the world of off-roading and overlanding.
Garmin International, Inc., a unit of Garmin Ltd. (GRMN), today announced the all-terrain Garmin Overlander™, an all-in-one GPS navigator specifically designed to fit the needs of the growing overlanding community. From navigating the intricate roads of suburbia to exploring remote regions of the great outdoors, the Overlander offers turn-by-turn, world-renowned directions from Garmin and built-in topo (topography) maps. Thanks to this detailed topo mapping data, travelers can use the Overlander for off-grid guidance covering public land boundaries, 4x4 roads for North and South America and much more.
Improvement in profitability and outperformance against the industry can be important characteristics in a stock for...
Garmin International, Inc., a unit of Garmin Ltd. (GRMN), today announced the new Dash Cam™ 46/56/66W and the Dash Cam Mini, the latest additions to its popular dashboard camera lineup. Thanks to a variety of options available throughout the new series, including an ultra-compact design, high resolution video, an extra-wide field of view, GPS, and voice control, drivers can easily find a Garmin dash cam that is tailored to their specific needs. Garmin dash cams with built-in GPS have drivers covered there as well.
Fitbit (NASDAQ: FIT) reported stronger than expected first quarter results on May 1. In addition to meaningfully beating top line and bottom line expectations, the results included multiple, other items that are tremendously positive for Fitbit stock.Source: Fitbit The company's revenue rose 10% year-over-year, its tracker revenue rose YoY for the first time in three years, its smartwatch revenue soared 117% YoY, and the revenue it obtains from companies and insurers jumped 70% YoY.Furthermore, FIT did not raise its 2019 guidance, but said it was not doing so only because it chose to be "prudent," a code word for conservative.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Strong Buy Stocks That Tick All the Boxes A Closer Look at FITStill, Fitbit stock fell meaningfully, as investors chose to focus on the few negative aspects of the company's results, including lower average selling prices and conservative Q2 guidance.I believe that these investors are making the classic mistake of focusing on the trees instead of the forest. That's because I think that FIT has a tremendous monetization opportunity that will enable Fitbit stock to at least double over the next year or two. Fitbit's strategy for monetizing its users on a massive level is becoming clear.FIT CEO James Park reported that a large study of diabetes prevention methods found that people who used Fitbit devices, "were more active and lost more weight during the program than those who did not and were more likely to be engaged in the platform a year later."Additionally, subjects who used Fitbit devices averaged an hour more activity per week for much of the program than those who did not, he stated.Clearly, people who use step-tracking devices are more active and, consequently, less like to have diabetes, heart disease and some forms of cancer than those who do not use such devices.As I've written previously, insurers and employers have tremendous incentive to keep their employees and clients healthier.As a result, they will likely be willing to pay meaningful amounts of money to do so. Opportunities Abound for FitbitFitbit is already taking advantage of this opportunity on multiple fronts. Many Medicare Advantage programs, spread around 27 states, are covering Fitbit devices, Park reported. Furthermore, three national health plans are currently using Fitbit Care as their means for diabetes management. "There's a lot of interest (among insurers) in our Fitbit Care product," Park said. With Fitbit Care, the company analyzes patients' data it obtains from its own devices as well as other devices. and uses that data to offer patients ways of improving their health. In the second half of this year, FIT plans to launch a premium offering for individuals based on Fitbit Care. I believe that, over time, Fitbit Care will be adopted by many employers, health insurers, and individuals. As everyone knows, obesity is a major problem in the U.S. and leads to tremendous health problems. Under the principle that "what gets measured gets managed," step-tracking devices definitely help people become more active. Employers and health insurers have a financial interest in keeping their employees and clients healthy. And individuals, of course, have many reasons to want to be healthier and avoid obesity, and Americans already spend a great deal of time and money seeking to accomplish those goals. Therefore, I believe that there's a tremendous addressable market for Fitbit's devices, encompassing both enterprises and individuals. If FIT can obtain a sizable piece of that market, FIT's results and FIT stock will definitely rise tremendously over the long-term. Fitbit Stock and the Monetization WarFitbit is in a "sweet spot" that will allow it to become the leader of this huge addressable market. The smartwatches sold by Apple (NASDAQ: AAPL) and Garmin (NASDAQ:GRMN) are too expensive for most enterprises and many people who want to use step trackers to improve their health. At the same time, many enterprises and people will not be ready to trust Chinese companies who sell cheaper step trackers, but don't have well-respected brand names, with the important task of helping themselves or their clients/employees improve their health. That leaves Fitbit and Samsung as the remaining options, and FIT's devices already meaningfully outsell those of Samsung, giving FIT an important advantage over its Korean competitor. I was disappointed that FIT did not make any new announcements regarding its devices' ability to diagnose diseases or take measurements that are crucial for individuals' health, such as blood oxygen levels or sleep apnea. In the past, I have said that Fitbit must make positive strides in those areas for FIT stock to rally. Still, the company noted that it was continuing to work with the FDA to "test and develop" those types of solutions, and I recognize that it takes a long time to get the agency to approve devices. More importantly, I'm now convinced that, over the next year or two, monetizing Fitbit Care will prove to be a tremendous, positive catalyst for FIT's results and FIT stock., enabling Fitbit stock to at least double during that time As of this writing, the author owned shares of FIT stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Strong Buy Stocks That Tick All the Boxes * 7 Stocks to Buy From the T. Rowe Price Health Sciences Fund * 5 Tech ETFs to Plug In to Big Profits Compare Brokers The post Why Fitbit Stock Is Poised to at Least Double by 2021 appeared first on InvestorPlace.
Garmin Ltd NASDAQ/NGS:GRMNView full report here! Summary * ETFs holding this stock are seeing positive inflows but are weakening * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for GRMN with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting GRMN. Money flowETF/Index ownership | NegativeETF activity is negative and may be weakening. The net inflows of $1.78 billion over the last one-month into ETFs that hold GRMN are among the lowest of the last year and appear to be slowing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Shares of Garmin (NASDAQ:GRMN) dropped sharply in early May after the consumer technology company failed to raise its full-year 2019 guide after topping first quarter expectations. The implication? The next three quarters will actually be below consensus. Investors weren't too happy. Garmin stock dropped 7% in response. The stock now trades below $80 for the first time since mid-February.Source: slgckgc via Flickr (modified)Some contrarians may look at the drop below $80 as an opportunity to buy the dip in what has been a red-hot stock. But, the appropriate way to look at GRMN is that it was simply overvalued above $80. Thus, this drop below $80 is a much-needed correction, and not an opportunity to buy just yet.Zooming out, this is a consumer technology company that has decent, but not great, go-forward growth prospects, on healthy, but not surging, margins. Yet, Garmin trades at a valuation that implies both great growth and surging margins. This disconnect won't last forever. Indeed, right now, the disconnect is in the process of fixing itself.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best Stocks to Buy for May The "fix" could drag Garmin stock all the way down to and potentially even below $70. Thus, until this stock gets closer to $70 than $80, investors should avoid buying the dip. Garmin's Growth Narrative Is AverageIn the big picture, Garmin's growth narrative is average.This company markets and sells technology hardware products across a variety of industries, mostly focused on wearables, smartwatches, cameras, and other GPS-enabled devices. Growth in this category is good and healthy. Over the past several quarters, Garmin has reported consistent mid to high single digit revenue growth on growing demand for new products across its Aviation, Marine, Fitness, and Outdoor segments.But, mid to high single digit revenue growth isn't anything to write home about, especially considering that the growth trajectory is slowing.In 2018, revenues rose 7%. This year, revenues are expected to rise just ~4.5%, and analysts peg revenue growth at ~4% the following year. Revenue growth across the whole market is expected to average around 5-6% over the next two years. Thus, Garmin's revenue growth narrative is actually fairly average, and arguably below-average.Meanwhile, gross and operating margins have been on a solid upward trajectory for the past several years. But, that trajectory is hitting some turbulence in 2019.Specifically, both gross and operating margins fell back in the first quarter of 2019 amid pricing and mix pressures in the company's biggest segment, Fitness. These pressures are expected to persist. For the full year, operating margins are expected to drop.Consequently, the guide calls for flat EPS growth in 2019. Analysts see just ~6% EPS growth in 2020. EPS growth across the whole market is expected to be around 3% in 2019, and 11% in 2020. Yet again, we see that Garmin's profit growth narrative is actually fairly average, and arguably below-average.Overall, Garmin's growth narrative is largely below-average to average. The problem with Garmin stock is that the valuation doesn't reflect this reality. The Valuation Implies Above-AverageThe valuation underlying GRMN implies that this stock has an above-average growth profile, which it doesn't.Even after the post-earnings sell-off, Garmin stock still trades at 21-times forward earnings. That's a big multiple. The growth-average forward price-to-earnings multiple in the stock market is just above 21, while the market average multiple is 17. Thus, GRMN stock is trading at a sizable premium to the market and at a growth-type valuation.But this isn't a growth stock. Growth stocks are double-digit revenue growers with healthy margin drivers, and ultimately something north of 15% annualized profit growth potential. Garmin is a mid single digit revenue grower with margin pressures, and ultimately something like 5-6% profit growth potential. That's below market average.As such, this correction in GRMN stock should persist until the valuation starts to make sense. When does that happen? Around the market average multiple of 17. Applying that multiple to what I think could be $4 in EPS next year, that equates to a 2019 price target for Garmin stock of $68. Bottom Line on Garmin StockGarmin stock simply got way head of itself in early 2019. Now, the stock is reasonably pulling back to much more fundamentally supported levels. This correction should persist for the foreseeable future. I wouldn't be a buyer until the stock drops closer to and potentially even below $70.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Stocks to Buy for May * 5 Elephant-Sized Companies Warren Buffett Could Buy * 7 Cheap ETFs for Novice Investors Compare Brokers The post Let Garmin Stock Cool off a Lot More Before Buying the Dip appeared first on InvestorPlace.
Garmin Stock Fell following Its Q1 Earnings Release(Continued from Prior Part)GRMN’s returnsShares of Garmin (GRMN) fell just below 7% on May 1, 2019, to close the day at $80.06. The stock is currently trading 36% above its 52-week low of $58.71
Garmin Stock Fell following Its Q1 Earnings Release(Continued from Prior Part)Operating income by segmentGarmin (GRMN) has five business segments: Fitness, Aviation, Outdoor, Marine, and Auto. While the Fitness segment accounted for 24% of its total
Garmin Stock Fell following Its Q1 Earnings Release(Continued from Prior Part)Marine sales grew 18% in the first quarterGarmin’s (GRMN) businesses include the Fitness, Outdoor, Auto, Aviation, and Marine segments. The company launched several
Garmin Stock Fell following Its Q1 Earnings ReleaseRevenue rose 8% for Garmin in the first quarterConsumer tech company Garmin (GRMN) announced its first-quarter earnings results on May 1, 2019, and reported sales of $766 million, a rise of 8% YoY
The iPhone maker beat Wall Street's first quarter profit forecasts and raised its quarterly dividend. The drugstore operator blew past first quarter profit estimates and raised its profit forecast for the year. The cruise line operator had more passengers boarding its ships during the first quarter, pushing profit above Wall Street's forecasts.
Garmin (GRMN) delivered earnings and revenue surprises of 2.82% and 6.12%, respectively, for the quarter ended March 2019. Do the numbers hold clues to what lies ahead for the stock?
Analysts polled by FactSet were expecting the company to report earnings of 71 cents per share on revenue of $731 million. "Revenue and profit grew, led by strong double-digit growth in marine, aviation, fitness, and outdoor on a combined basis," said Cliff Pemble, president and chief executive officer of Garmin.
Garmin (GRMN) reports strong first-quarter results on the back of solid performance of fitness, outdoor and aviation segments.
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The Schaffhausen, Switzerland-based company said it had profit of 74 cents per share. Earnings, adjusted for non-recurring gains, were 73 cents per share. The results exceeded Wall Street expectations. ...