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Here's Why You Should Add Garmin (GRMN) to Your Portfolio
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Garmin Ltd. ((GRMN - Free Report) ) is currently one of the top-performing stocks in the technology sector. Markedly, an increase in share price and strong fundamentals signal its bullish run. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio right now.
The company has performed pretty well this year and has the potential to carry on the momentum in the near term as well.
Share Price Appreciation: A glimpse of the company’s price trend shows that the stock has had an impressive run on the bourses year to date. Garmin has returned 34.8%, comparing favorably with the S&P 500 market gain of 15.3%.
Solid Rank: Garmin currently sports a Zacks Rank #1 (Strong Buy). Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: One estimate for the current year have moved north over the past 60 days against no southward revisions, reflecting analysts’ confidence in the company. Moreover, the Zacks Consensus Estimate for the current year has increased 1.3% over the same period. Also, the Zacks Consensus Estimate for 2019 has inched up 0.75% to $4.03.
Positive Earnings Surprise History: Garmin has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with average positive earnings surprise of 20.32%.
Strong Prospects: The Zacks Consensus Estimate for fiscal 2019 earnings of $3.9indicates year-over-year growth of 5.69%. Moreover, earnings are expected to grow 3.56% year over year in 2020. The stock has a long-term expected earnings per share growth rate of 7.35%.
Growth Drivers
Garmin's top-line growth continues to be driven by solid momentum across fitness, marine, outdoor and aviation segments. Notably, the company has been riding on product line expansion. Garmin's strategy involves a constantly evolving product line supported by a platform approach that increases engagement with products and focuses on building a community of users.
In addition, accelerated adoption of Garmin’s wearable products has been a huge positive. The company has been witnessing solid demand for golf wearables, Instinct adventure watch, inReach devices, chartplotters and advanced sonars, which are adding to top-line growth.
Increasing investments in wearable gadgets such as outdoor watches and marine cameras will help Garmin counter the decline in sales of traditional automobile navigation devices.
Also, solid momentum in the OEM category and benefits from the Tacx buyout will likely remain tailwinds. This buyout has added smart trainers and basic trainers such as Booster, Blue Matic, and Blue Twist to its fitness products portfolio.
We believe all these products are expected to drive top-line growth within Garmin’s fitness segment.
Long-term earnings growth for Booking Holdings, Ambarella and Itron is currently projected at 13.08%, 11.18% and 25%, respectively.
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Here's Why You Should Add Garmin (GRMN) to Your Portfolio
Garmin Ltd. ((GRMN - Free Report) ) is currently one of the top-performing stocks in the technology sector. Markedly, an increase in share price and strong fundamentals signal its bullish run. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio right now.
The company has performed pretty well this year and has the potential to carry on the momentum in the near term as well.
Garmin Ltd. Price and Consensus
Garmin Ltd. price-consensus-chart | Garmin Ltd. Quote
Why an Attractive Pick?
Share Price Appreciation: A glimpse of the company’s price trend shows that the stock has had an impressive run on the bourses year to date. Garmin has returned 34.8%, comparing favorably with the S&P 500 market gain of 15.3%.
Solid Rank: Garmin currently sports a Zacks Rank #1 (Strong Buy). Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: One estimate for the current year have moved north over the past 60 days against no southward revisions, reflecting analysts’ confidence in the company. Moreover, the Zacks Consensus Estimate for the current year has increased 1.3% over the same period. Also, the Zacks Consensus Estimate for 2019 has inched up 0.75% to $4.03.
Positive Earnings Surprise History: Garmin has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with average positive earnings surprise of 20.32%.
Strong Prospects: The Zacks Consensus Estimate for fiscal 2019 earnings of $3.9indicates year-over-year growth of 5.69%. Moreover, earnings are expected to grow 3.56% year over year in 2020. The stock has a long-term expected earnings per share growth rate of 7.35%.
Growth Drivers
Garmin's top-line growth continues to be driven by solid momentum across fitness, marine, outdoor and aviation segments. Notably, the company has been riding on product line expansion. Garmin's strategy involves a constantly evolving product line supported by a platform approach that increases engagement with products and focuses on building a community of users.
In addition, accelerated adoption of Garmin’s wearable products has been a huge positive. The company has been witnessing solid demand for golf wearables, Instinct adventure watch, inReach devices, chartplotters and advanced sonars, which are adding to top-line growth.
Increasing investments in wearable gadgets such as outdoor watches and marine cameras will help Garmin counter the decline in sales of traditional automobile navigation devices.
Also, solid momentum in the OEM category and benefits from the Tacx buyout will likely remain tailwinds. This buyout has added smart trainers and basic trainers such as Booster, Blue Matic, and Blue Twist to its fitness products portfolio.
We believe all these products are expected to drive top-line growth within Garmin’s fitness segment.
Other Stocks to Consider
Other top-ranked stocks in the broader technology sector include Booking Holdings Inc. (BKNG - Free Report) , Ambarella, Inc. (AMBA - Free Report) and Itron, Inc. (ITRI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Booking Holdings, Ambarella and Itron is currently projected at 13.08%, 11.18% and 25%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>