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Here's How Much a $1000 Investment in Garmin Made 10 Years Ago Would Be Worth Today

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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 - Free Report) 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 $4.86 billion in 2022. The company report operations under five segments—Outdoor, Fitness, Marine, Auto and Aviation, which generated 30.8%, 22.8%, 18.6%, 11.5% and 16.3% 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.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Garmin, if you bought shares a decade ago, you're likely feeling really good about your investment today.

According to our calculations, a $1000 investment made in November 2013 would be worth $2,509.84, or a 150.98% gain, as of November 9, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.

The S&P 500 rose 147.53% and the price of gold increased 45.45% over the same time frame in comparison.

Looking ahead, analysts are expecting more upside for GRMN.

Garmin reported outstanding third-quarter 2023 results with both earnings and revenues increasing on a year-over-year basis. Growth in revenues were driven by strength in the Fitness and Auto OEM segments. While growth in the Fitness segment was primarily attributed to advanced wearables demand, Auto OEM’s segmental performance was driven by growing shipment of domain controllers. Solid momentum in Aviation driven by strength in OEM categories has been a tailwind. Garmin has raised its 2023 guidance for revenues, following its acquisition of JL Audio in the third-quarter. Shares have outperformed its industry on a year-to-date basis. However, sluggishness in the Marine segment due to weakness across multiple product categories is a headwind. Macroeconomic uncertainties and supply chain constraints are concerns.

The stock is up 6.76% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2023. The consensus estimate has moved up as well.

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