Is Garmin's Ongoing Product Innovation a Sign to Buy the Stock?

Garmin GRMN shares have gained 27.5% in the trailing 12 months, outperforming the Zacks Computer and Technology sector and the S&P 500 index’s return of 6.9% and 10.7%, respectively. The stock has also outperformed the Zacks Electronics - Miscellaneous Products industry’s decline of 47.9% in the same time frame.

The company’s shares have been riding on accelerated growth across all of its segments, including Fitness, Aviation and Marine. Garmin expects its Fitness, Aviation and Marine revenues to increase 10%, 5% and 4%, respectively, in 2025. Its performance is a direct result of its robust product portfolio, which helped push Garmin’s revenues by 23% in 2024 to $1.82 billion. 

With this momentum, the key question for investors is — Can Garmin sustain this growth through the rest of 2025?

Garmin Upgrades Products in Fitness, Aviation and Marine

Garmin is well ahead of the game in the Fitness Wearables market, even with top players like Apple AAPL and Alphabet’s GOOGL Fitbit. The Apple Watch offers seamless iPhone integration and smart notifications, while Fitbit targets everyday fitness users with devices that track sleep, activity and stress. Shares of Apple and Alphabet have returned 20.4% and 0.1%, respectively, in the trailing 12 months.

Garmin Ltd. Price and Consensus

Garmin Ltd. price-consensus-chart | Garmin Ltd. Quote

Garmin recently announced the launch of Vivoactive 6, its newest health and fitness smartwatch. With this device, the user can view their energy levels throughout the day, receive personalized coaching on sleep, and track stress and blood oxygen saturation. Women can track their menstrual cycle and receive guidance based on that. This new addition will likely boost the company’s sales, leading to top-line growth.

In the Aviation segment, Garmin competes with Honeywell International HON. Honeywell International is a leading provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers. GRMN’s performance has outperformed this peer, with Honeywell International shares returning 5.4% in the trailing 12 months. Garmin also stays ahead of the competition with continuous upgrades. In March, the company introduced GCO 14, its first carbon monoxide detector for aircraft. This launch aligns with the company’s ongoing commitment to enhancing aviation safety.

Even in the Marine segment, Garmin expanded boater warning capabilities with a new Automatic Identification System that has a warning message feature. With consistent innovation across its Fitness, Aviation, and Marine segments, and with its product portfolio expanding, the company is well-positioned for sustained growth in 2025.

GRMN Offers Strong 2025 Guidance

In addition to the recent product launches mentioned above, Garmin has several more planned for 2025, with some products representing new categories. With its product portfolio strengthening, the company expects its year-over-year revenues to rise 8% to $6.8 billion.

The Zacks Consensus Estimate for GRMN’s 2025 revenues is currently pegged at 6.87 billion, indicating a year-over-year increase of 9.09%. The consensus mark for earnings is pegged at $8.25 per share, which has been revised upward by 3.38% over the past 30 days. The estimate suggests year-over-year growth of 11.64%.

GRMN beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with the average surprise being 28.85%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

GRMN Stock: Buy, Sell or Hold?

Garmin is benefiting from strong momentum across all its business segments, supported by rising demand in key markets, such as the Americas and EMEA. The company’s commitment to continuous innovation, strategic diversification and market expansion is commendable, as it actively adds products across its entire portfolio. Despite facing competition in each segment, GRMN has firmly established itself as a leading equipment manufacturer. Additionally, Garmin has a strong balance sheet with an ample liquidity position. As of Dec. 28, 2024, it had cash and cash equivalents and marketable securities of $2.5 billion. The strong liquidity position helps the company innovate and pursue strategic initiatives.

GRMN currently sports a Zacks Rank #1 (Strong Buy), suggesting a compelling entry point in the stock for investors in 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

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

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