Garmin (GRMN) closed at $213.91 in the latest trading session, marking a +1.14% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.19% for the day. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq lost 0.1%.
Shares of the maker of personal navigation devices witnessed a gain of 2.06% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.62%, and the S&P 500's gain of 2.26%.
The upcoming earnings release of Garmin will be of great interest to investors. The company is forecasted to report an EPS of $2.39, showcasing a 0.83% downward movement from the corresponding quarter of the prior 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.
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 pay attention to any latest changes in analyst estimates for Garmin. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Garmin holds a Zacks Rank of #3 (Hold).
With respect to valuation, Garmin is currently being traded at a Forward P/E ratio of 24.12. This represents a discount compared to its industry average Forward P/E of 24.16.
It's also important to note that GRMN currently trades at a PEG ratio of 2.24. 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 1.71 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 96, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Garmin Ltd. (GRMN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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