Garmin (GRMN) closed at $240.17 in the latest trading session, marking a -4.38% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.57%. On the other hand, the Dow registered a loss of 1.61%, and the technology-centric Nasdaq decreased by 0.26%.
Prior to today's trading, shares of the maker of personal navigation devices had gained 22.37% outpaced the Computer and Technology sector's loss of 0.64% and the S&P 500's loss of 0.15%.
The investment community will be paying close attention to the earnings performance of Garmin in its upcoming release. The company is forecasted to report an EPS of $1.78, showcasing a 10.56% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.69 billion, up 10.38% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.2 per share and a revenue of $7.97 billion, representing changes of +7.48% and +9.98%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Garmin. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been a 7.33% rise in the Zacks Consensus EPS estimate. Currently, Garmin is carrying a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Garmin has a Forward P/E ratio of 27.31 right now. This denotes a premium relative to the industry average Forward P/E of 27.13.
One should further note that GRMN currently holds a PEG ratio of 3.08. 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 1.87.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 31, finds itself in the top 13% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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