Garmin Ltd.

(New York Stock Exchange)
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Somewhat Bullish +45

Garmin (GRMN) Rises Higher Than Market: Key Facts

AI-generated analysis

πŸ“ˆ Garmin closed at $241.96, gaining 1.69% and outperforming the S&P 500's 0.41% daily gain.

πŸ“‰ The stock has lost 2.01% over the past month despite a 10.03% sector-wide gain in Computer and Technology.

πŸ’° Analysts project quarterly EPS of $2.27, representing a 4.61% increase from the previous year.

πŸ“Š Revenue is expected to reach $1.93 billion for the quarter, up 6.41% year-over-year.

πŸš€ Full-year consensus estimates forecast EPS of $9.53 and revenue of $7.98 billion.

πŸ“ˆ Annual growth projections show an 11.33% increase in earnings and a 10.12% rise in revenue.

πŸ’΅ Garmin trades at a Forward P/E of 24.96, offering a discount to the industry average of 30.38.

πŸ“‰ The stock's PEG ratio stands at 2.81, which is higher than the industry average of 1.66.

πŸ† Garmin holds a Zacks Rank of #3 (Hold), with recent consensus EPS projections moving slightly lower by 0.35%.

🌐 The Electronics - Miscellaneous Products industry ranks in the top 25% of all industries based on Zacks metrics.

Bullish Signals
  • Garmin outperformed major market indices like the S&P 500 and Dow Jones Industrial Average during the recent trading session.
  • The company is projected to deliver double-digit growth in both earnings (4.61%) and revenue (6.41%) for the upcoming quarter.
  • Full-year forecasts indicate strong expansion with expected earnings growth of 11.33% and revenue growth of 10.12%.
  • Valuation analysis reveals Garmin is trading at a Forward P/E ratio of 24.96, which is significantly lower than the industry average of 30.38.
Risk Factors
  • The stock has underperformed over the last month, dropping 2.01% while the Computer and Technology sector gained 10.03%.
  • Garmin's PEG ratio of 2.81 is substantially higher than the industry average of 1.66, suggesting the stock may be priced for high growth that hasn't fully materialized yet.
  • Recent analyst consensus EPS projections have decreased by 0.35% over the past 30 days, indicating a slight downward revision in short-term expectations.
Full Analysis
Garmin Ltd. (GRMN) shares closed the previous trading session at $241.96, rising 1.69% to outperform the S&P 500 and Dow Jones Industrial Average, though the Nasdaq declined slightly. Despite this daily gain, the stock had underperformed over the past month, lagging behind the broader Computer and Technology sector which saw a double-digit percentage increase. Analysts are closely watching Garmin ahead of its upcoming earnings report, with consensus estimates projecting quarterly earnings per share (EPS) of $2.27 and revenue of $1.93 billion. Both figures represent significant year-over-year growth, with EPS expected to rise 4.61% and revenue anticipated to increase by 6.41% compared to the same quarter last year. Full-year projections from Zacks Consensus Estimates indicate a robust outlook for Garmin, forecasting annual EPS of $9.53 and revenue of $7.98 billion. These figures suggest double-digit growth rates of approximately 11.33% for earnings and 10.12% for revenue relative to the prior year, reflecting strong market confidence in the company's trajectory. Valuation metrics show Garmin trading at a Forward P/E ratio of 24.96, which is lower than its industry average of 30.38, suggesting a potential discount. However, the stock carries a PEG ratio of 2.81, significantly higher than the industry average of 1.66, indicating that while earnings growth is priced in, the valuation relative to that growth remains elevated compared to peers.