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Garmin (GRMN) Stock Declines While Market Improves: Some Information for Investors

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In the latest trading session, Garmin (GRMN - Free Report) closed at $161.93, marking a -1.38% move from the previous day. This move lagged the S&P 500's daily gain of 0.23%. Elsewhere, the Dow saw a downswing of 0.17%, while the tech-heavy Nasdaq appreciated by 0.34%.

The the stock of maker of personal navigation devices has fallen by 3.73% in the past month, lagging the Computer and Technology sector's loss of 2.01% and the S&P 500's gain of 3.96%.

Analysts and investors alike will be keeping a close eye on the performance of Garmin in its upcoming earnings disclosure. The company is expected to report EPS of $1.45, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, up 11.95% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $5.77 per share and a revenue of $5.9 billion, demonstrating changes of +3.22% and +12.94%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Garmin. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.65% increase. At present, Garmin boasts a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Garmin is currently being traded at a Forward P/E ratio of 28.44. This indicates a premium in contrast to its industry's Forward P/E of 21.6.

Investors should also note that GRMN has a PEG ratio of 3.54 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. GRMN's industry had an average PEG ratio of 2.73 as of yesterday's close.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 175, placing it within the bottom 31% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow GRMN in the coming trading sessions, be sure to utilize Zacks.com.


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