Garmin (GRMN) Suffers a Larger Drop Than the General Market: Key Insights

Garmin (GRMN) ended the recent trading session at $231.60, demonstrating a -1.49% change from the preceding day's closing price. This change lagged the S&P 500's 1.36% loss on the day. Meanwhile, the Dow experienced a drop of 1.64%, and the technology-dominated Nasdaq saw a decrease of 1.46%.

The maker of personal navigation devices's stock has climbed by 8.35% in the past month, exceeding the Computer and Technology sector's loss of 0.24% and the S&P 500's loss of 1.76%.

The investment community will be paying close attention to the earnings performance of Garmin in its upcoming release. The company's upcoming EPS is projected at $1.83, signifying a 13.66% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.72 billion, up 11.83% from the prior-year quarter.

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.

Investors should also take note of any recent adjustments to analyst estimates for Garmin. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Currently, Garmin is carrying a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Garmin is currently being traded at a Forward P/E ratio of 25.02. This represents no noticeable deviation compared to its industry average Forward P/E of 25.02.

It's also important to note that GRMN currently trades at a PEG ratio of 2.82. 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 1.63 at yesterday's closing price.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 26, finds itself in the top 11% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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Garmin Ltd. (GRMN): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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