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Why the Market Dipped But Garmin (GRMN) Gained Today
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In the latest market close, Garmin (GRMN - Free Report) reached $161.45, with a +0.93% movement compared to the previous day. This change outpaced the S&P 500's 0.16% loss on the day. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.18%.
The maker of personal navigation devices's stock has dropped by 1.7% in the past month, falling short of the Computer and Technology sector's gain of 6.77% and the S&P 500's gain of 3.15%.
The investment community will be paying close attention to the earnings performance of Garmin in its upcoming release. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.77 per share and a revenue of $5.9 billion, indicating changes of +3.22% and +12.94%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Garmin. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.65% higher. As of now, Garmin holds a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Garmin is currently trading at a Forward P/E ratio of 27.71. This signifies a premium in comparison to the average Forward P/E of 21.21 for its industry.
It's also important to note that GRMN currently trades at a PEG ratio of 3.45. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Electronics - Miscellaneous Products industry was having an average PEG ratio of 2.67.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 25% echelons of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Why the Market Dipped But Garmin (GRMN) Gained Today
In the latest market close, Garmin (GRMN - Free Report) reached $161.45, with a +0.93% movement compared to the previous day. This change outpaced the S&P 500's 0.16% loss on the day. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.18%.
The maker of personal navigation devices's stock has dropped by 1.7% in the past month, falling short of the Computer and Technology sector's gain of 6.77% and the S&P 500's gain of 3.15%.
The investment community will be paying close attention to the earnings performance of Garmin in its upcoming release. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.77 per share and a revenue of $5.9 billion, indicating changes of +3.22% and +12.94%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Garmin. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.65% higher. As of now, Garmin holds a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Garmin is currently trading at a Forward P/E ratio of 27.71. This signifies a premium in comparison to the average Forward P/E of 21.21 for its industry.
It's also important to note that GRMN currently trades at a PEG ratio of 3.45. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Electronics - Miscellaneous Products industry was having an average PEG ratio of 2.67.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 25% echelons of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.