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Garmin (GRMN) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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The latest trading session saw Garmin (GRMN - Free Report) ending at $173.15, denoting a -1.51% adjustment from its last day's close. This change lagged the S&P 500's 0.19% loss on the day. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.04%.

The the stock of maker of personal navigation devices has fallen by 2.68% in the past month, lagging the Computer and Technology sector's gain of 0.73% and the S&P 500's gain of 1.95%.

Investors will be eagerly watching for the performance of Garmin in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.45, indicating a 2.84% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.43 billion, showing a 12.14% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.05 per share and a revenue of $5.97 billion, representing changes of +8.23% and +14.11%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Garmin. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Garmin possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Garmin has a Forward P/E ratio of 29.06 right now. This indicates a premium in contrast to its industry's Forward P/E of 18.76.

Meanwhile, GRMN's PEG ratio is currently 3.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 2.14.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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