Garmin (GRMN) Rises But Trails Market: What Investors Should Know

Garmin (GRMN) ended the recent trading session at $215.70, demonstrating a +0.53% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 1%. Meanwhile, the Dow experienced a rise of 0.78%, and the technology-dominated Nasdaq saw an increase of 1.51%.

Coming into today, shares of the maker of personal navigation devices had gained 4.45% in the past month. In that same time, the Computer and Technology sector lost 4.13%, while the S&P 500 lost 2.14%.

Analysts and investors alike will be keeping a close eye on the performance of Garmin in its upcoming earnings disclosure. The company's earnings report is set to go public on February 19, 2025. It is anticipated that the company will report an EPS of $1.89, marking a 9.88% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.67 billion, up 12.74% from the prior-year quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Garmin. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Garmin boasts a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Garmin is currently exchanging hands at a Forward P/E ratio of 28.01. This indicates a premium in contrast to its industry's Forward P/E of 19.5.

We can also see that GRMN currently has a PEG ratio of 1.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Electronics - Miscellaneous Products industry had an average PEG ratio of 1.69.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% of all 250+ industries.