Garmin (GRMN) closed the most recent trading day at $202.85, moving -1.09% from the previous trading session. This move lagged the S&P 500's daily loss of 0.74%. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.76%.
The maker of personal navigation devices's stock has climbed by 4.01% in the past month, exceeding the Computer and Technology sector's gain of 0.14% and the S&P 500's gain of 0.79%.
Market participants will be closely following the financial results of Garmin in its upcoming release. It is anticipated that the company will report an EPS of $2.39, marking a 0.83% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.01 billion, indicating a 10.43% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $8.2 per share and a revenue of $7.13 billion, demonstrating changes of +10.96% and +13.28%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Garmin. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Garmin boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Garmin is currently exchanging hands at a Forward P/E ratio of 25.02. For comparison, its industry has an average Forward P/E of 23.57, which means Garmin is trading at a premium to the group.
One should further note that GRMN currently holds a PEG ratio of 2.32. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 1.88.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 32% 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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