Garmin (GRMN) ended the recent trading session at $235.96, demonstrating a -1.06% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.3%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.03%.
The maker of personal navigation devices's stock has climbed by 2.38% in the past month, falling short of the Computer and Technology sector's gain of 3.1% and outpacing the S&P 500's gain of 2.09%.
Analysts and investors alike will be keeping a close eye on the performance of Garmin in its upcoming earnings disclosure. In that report, analysts expect Garmin to post earnings of $1.98 per share. This would mark a year-over-year decline of 0.5%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.78 billion, indicating a 12.35% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.07 per share and revenue of $7.05 billion, indicating changes of +9.2% and +11.9%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Garmin. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.12% higher. Garmin is holding a Zacks Rank of #2 (Buy) right now.
In the context of valuation, Garmin is at present trading with a Forward P/E ratio of 29.57. This represents a premium compared to its industry average Forward P/E of 18.88.
One should further note that GRMN currently holds a PEG ratio of 2.65. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Electronics – Miscellaneous Products industry had an average PEG ratio of 1.92.
