Garmin (GRMN) closed the most recent trading day at $241.96, moving +1.69% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.41%. At the same time, the Dow added 1.73%, and the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the maker of personal navigation devices had lost 2.01% over the past month, lagging the Computer and Technology sector's gain of 10.03% and the S&P 500's gain of 4.59%.
The investment community will be closely monitoring the performance of Garmin in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.27, reflecting a 4.61% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.93 billion, indicating a 6.41% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.53 per share and revenue of $7.98 billion, which would represent changes of +11.33% and +10.12%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.35% lower. Garmin is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Garmin is currently trading at a Forward P/E ratio of 24.96. This indicates a discount in contrast to its industry's Forward P/E of 30.38.
Investors should also note that GRMN has a PEG ratio of 2.81 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 1.66 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 60, finds itself in the top 25% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Garmin Ltd. (GRMN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).