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Garmin (GRMN) Rises Higher Than Market: Key Facts

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Garmin (GRMN - Free Report) closed the most recent trading day at $167.58, moving +0.64% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.4% for the day. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.63%.

The the stock of maker of personal navigation devices has fallen by 3.05% in the past month, lagging the Computer and Technology sector's gain of 4.88% and the S&P 500's gain of 3.76%.

The upcoming earnings release of Garmin will be of great interest to investors. The company's earnings report is expected on October 30, 2024. The company's upcoming EPS is projected at $1.46, signifying a 3.55% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.44 billion, up 12.99% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $6.08 per share and a revenue of $5.99 billion, demonstrating changes of +8.77% and +14.6%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Garmin. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 shifted 0.45% upward. As of now, Garmin holds a Zacks Rank of #2 (Buy).

With respect to valuation, Garmin is currently being traded at a Forward P/E ratio of 27.4. This expresses a premium compared to the average Forward P/E of 18.73 of its industry.

We can additionally observe that GRMN currently boasts a PEG ratio of 2.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 2.1.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 103, finds itself in the top 41% echelons 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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