In the latest close session, Garmin (GRMN) was up +2.28% at $280.31. The stock outpaced the S&P 500's daily gain of 1.49%. Meanwhile, the Dow experienced a rise of 0.71%, and the technology-dominated Nasdaq saw an increase of 2.26%.
Prior to today's trading, shares of the maker of personal navigation devices had lost 7.05% lagged the Computer and Technology sector's gain of 2.97% and the S&P 500's gain of 0.1%.
Market participants will be closely following the financial results of Garmin in its upcoming release. On that day, Garmin is projected to report earnings of $2.38 per share, which would represent year-over-year growth of 19.6%. Our most recent consensus estimate is calling for quarterly revenue of $1.99 billion, up 12.32% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.08 per share and a revenue of $8.09 billion, representing changes of +17.76% and +11.7%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Garmin. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Garmin is holding a Zacks Rank of #1 (Strong Buy) right now.
In the context of valuation, Garmin is at present trading with a Forward P/E ratio of 27.2. This denotes a premium relative to the industry average Forward P/E of 20.22.
It is also worth noting that GRMN currently has a PEG ratio of 3.06. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 1.37 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 18% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Garmin Ltd. (GRMN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).