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Bull of the Day: Garmin (GRMN)
Key Takeaways
Garmin (GRMN - Free Report) , a current Zacks Rank #1 (Strong Buy), is an original equipment manufacturer of navigation and communication equipment that incorporate the global positioning system (GPS)-based technology.
Analysts have raised their EPS expectations across the board over recent months, a clear bullish sign.
Image Source: Zacks Investment Research
Let’s take a closer look at what’s been driving the positive sentiment.
Garmin Posts Strong Results
Garmin’s latest set of quarterly results came in nicely above expectations, exceeding the Zacks Consensus EPS estimate by nearly 25% alongside an 8.4% sales surprise. The results perked shares up nicely, with upgraded guidance leading to the positive EPS picture.
The stock has been quietly strong over the past year, up nearly 50% and outperforming big relative to the S&P 500.
Image Source: Zacks Investment Research
GRMN’s sales shot 23% higher year-over-year throughout the above-mentioned period, with its gross margin also expanding nicely to 59.3% from 58.3% in the year-ago period. Several new products were also launched, continuing its nature of creating innovative products within the markets it serves.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Shares also reflect a nice play for income-focused investors, with the current 1.4% annual dividend yield edging out the S&P 500’s 1.3%. The company has also shown a commitment to increasingly rewarding shareholders, boasting a 5.6% five-year annualized dividend growth rate.
Below is a chart illustrating Garmin’s dividends per share on a quarterly basis.
Image Source: Zacks Investment Research
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Garmin (GRMN - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).