Why the Market Dipped But Garmin (GRMN) Gained Today

In the latest trading session, Garmin (GRMN) closed at $214.91, marking a +0.32% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 1.46% for the day. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq lost 3.07%.

The maker of personal navigation devices's stock has climbed by 2.33% in the past month, exceeding the Computer and Technology sector's gain of 0.43% and the S&P 500's gain of 1.08%.

The upcoming earnings release of Garmin will be of great interest to investors. The company's earnings report is expected on February 19, 2025. In that report, analysts expect Garmin to post earnings of $1.89 per share. This would mark year-over-year growth of 9.88%. In the meantime, our current consensus estimate forecasts the revenue to be $1.67 billion, indicating a 12.74% growth compared to the corresponding quarter of the prior year.

It is also important to note the recent changes to analyst estimates for Garmin. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Garmin is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, Garmin is at present trading with a Forward P/E ratio of 27.97. This valuation marks a premium compared to its industry's average Forward P/E of 19.87.

Investors should also note that GRMN has a PEG ratio of 1.29 right now. 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 Electronics - Miscellaneous Products was holding an average PEG ratio of 1.71 at yesterday's closing price.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 141, placing it within the bottom 44% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.