Garmin (GRMN) closed at $238.58 in the latest trading session, marking a +2.96% move from the prior day. This move outpaced the S&P 500's daily gain of 1.75%. Elsewhere, the Dow gained 1.86%, while the tech-heavy Nasdaq added 2.54%.
Shares of the maker of personal navigation devices have depreciated by 0.13% over the course of the past month, outperforming the Computer and Technology sector's loss of 3.11%, and the S&P 500's loss of 1.63%.
Analysts and investors alike will be keeping a close eye on the performance of Garmin in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.27, signifying a 4.61% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.93 billion, up 6.41% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.53 per share and a revenue of $7.98 billion, indicating changes of +11.33% and +10.12%, respectively, from the former year.
Any recent changes to analyst estimates for Garmin should also be noted by investors. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.35% lower. Garmin is currently a Zacks Rank #3 (Hold).
In the context of valuation, Garmin is at present trading with a Forward P/E ratio of 24.31. Its industry sports an average Forward P/E of 26.94, so one might conclude that Garmin is trading at a discount comparatively.
One should further note that GRMN currently holds a PEG ratio of 2.74. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Electronics - Miscellaneous Products industry was having an average PEG ratio of 1.59.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Garmin Ltd. (GRMN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).