Garmin (GRMN) Falls More Steeply Than Broader Market: What Investors Need to Know

Garmin (GRMN) ended the recent trading session at $236.09, demonstrating a -2.18% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq appreciated by 0.08%.

Heading into today, shares of the maker of personal navigation devices had gained 15.8% over the past month, outpacing the Computer and Technology sector's loss of 2.38% and the S&P 500's loss of 2.16%.

Analysts and investors alike will be keeping a close eye on the performance of Garmin in its upcoming earnings disclosure. In that report, analysts expect Garmin to post earnings of $1.83 per share. This would mark year-over-year growth of 13.66%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.72 billion, indicating a 11.83% increase compared to the same quarter of the previous year.

GRMN's full-year Zacks Consensus Estimates are calling for earnings of $9.4 per share and revenue of $7.95 billion. These results would represent year-over-year changes of +9.81% and +9.77%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Garmin. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.19% increase. Garmin presently features a Zacks Rank of #1 (Strong Buy).

Looking at valuation, Garmin is presently trading at a Forward P/E ratio of 25.68. Its industry sports an average Forward P/E of 25.61, so one might conclude that Garmin is trading at a premium comparatively.

It's also important to note that GRMN currently trades at a PEG ratio of 2.89. 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. The Electronics - Miscellaneous Products was holding an average PEG ratio of 1.61 at yesterday's closing price.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 25, positioning it in the top 11% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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