Garmin (GRMN) closed the most recent trading day at $209.35, moving +2.74% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.62% for the day. Meanwhile, the Dow experienced a rise of 0.99%, and the technology-dominated Nasdaq saw an increase of 0.65%.
Heading into today, shares of the maker of personal navigation devices had gained 1.24% over the past month, outpacing the Computer and Technology sector's loss of 1.47% and the S&P 500's gain of 0.59%.
Analysts and investors alike will be keeping a close eye on the performance of Garmin in its upcoming earnings disclosure. 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. At the same time, our most recent consensus estimate is projecting a revenue of $2.01 billion, reflecting a 10.43% rise from the equivalent quarter last year.
GRMN's full-year Zacks Consensus Estimates are calling for earnings of $8.2 per share and revenue of $7.13 billion. These results would represent year-over-year changes of +10.96% and 0%, respectively.
Investors should also note any recent changes to analyst estimates for Garmin. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Garmin boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Garmin is at present trading with a Forward P/E ratio of 23.24. This expresses a discount compared to the average Forward P/E of 23.46 of its industry.
Also, we should mention that GRMN has a PEG ratio of 2.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 1.62 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 38% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Garmin Ltd. (GRMN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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