In the latest close session, Garmin (GRMN) was down 1.02% at $204.80. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. Elsewhere, the Dow saw a downswing of 0.83%, while the tech-heavy Nasdaq appreciated by 0.91%.
Coming into today, shares of the maker of personal navigation devices had gained 0.64% in the past month. In that same time, the Computer and Technology sector gained 0.49%, while the S&P 500 gained 0.38%.
The investment community will be paying close attention to the earnings performance of Garmin in its upcoming release. The company is slated to reveal its earnings on February 18, 2026. In that report, analysts expect Garmin to post earnings of $2.39 per share. This would mark a year-over-year decline of 0.83%. Our most recent consensus estimate is calling for quarterly revenue of $2.01 billion, up 10.43% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.2 per share and a revenue of $7.13 billion, representing changes of +10.96% and 0%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Garmin. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Garmin holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Garmin has a Forward P/E ratio of 23.6 right now. This indicates a discount in contrast to its industry's Forward P/E of 24.98.
One should further note that GRMN currently holds a PEG ratio of 2.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Electronics - Miscellaneous Products industry had an average PEG ratio of 1.83.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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