Garmin (GRMN) closed at $234.18 in the latest trading session, marking a -1.05% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.1%. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, lost 0.33%.
Prior to today's trading, shares of the maker of personal navigation devices had gained 1.38% lagged the Computer and Technology sector's gain of 5.94% and the S&P 500's gain of 2.57%.
Investors will be eagerly watching for the performance of Garmin in its upcoming earnings disclosure. The company is expected to report EPS of $1.98, down 0.5% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.78 billion, showing a 12.35% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.07 per share and a revenue of $7.05 billion, indicating changes of +9.2% and +11.9%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Garmin. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.43% higher. Garmin currently has a Zacks Rank of #2 (Buy).
From a valuation perspective, Garmin is currently exchanging hands at a Forward P/E ratio of 29.34. For comparison, its industry has an average Forward P/E of 20.93, which means Garmin is trading at a premium to the group.
We can additionally observe that GRMN currently boasts a PEG ratio of 2.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Electronics – Miscellaneous Products industry stood at 1.88 at the close of the market yesterday.
The Electronics – Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 41% echelons of all 250+ industries.
