Garmin (GRMN) Outpaces Stock Market Gains: What You Should Know

This story originally appeared on Zacks

Garmin (GRMN) closed the last trading day at $132.38, up +0.17% from the previous trading session. That change outpaced the S&P 500’s gain of 0.08% on the day. Elsewhere, the Dow Jones lost 0.56%, while the big tech Nasdaq lost 0.42%.

– Zacks

Heading into the day, the personal navigation device maker’s shares lost 1.59% over the past month, outpacing the computer and technology sector’s 5.11% loss and backing the S&P 500’s 0.22% gain in the time.

Investors are hoping for some strength from Garmin as it nears its next earnings release. The company is expected to report earnings per share of $1.41, down 18.5% from the prior-year quarter. Meanwhile, our latest consensus estimate calls for revenue of $1.37 billion, up 1.01% from the prior year quarter.

Investors may also notice recent changes in analyst estimates for Garmin. These reviews help show the ever-changing nature of near-term business trends. With this in mind, we can take the positive rating reviews as a sign of optimism about the company’s business outlook.

Our research shows that these discretionary changes are directly correlated with near-term stock prices. To take advantage of this, we have developed Zacks Rank, a proprietary model that takes these discretionary changes into account and provides an actionable ranking system.

The Zacks Rank system ranges from #1 (strong buy) to #5 (strong sell). It has a proven track record of successes audited from abroad, with the No. 1 stock having generated an average annual return of +25% since 1988. Zacks Consensus EPS estimate is up 0.93% over the past month. Garmin has a Zacks rating of 3 (Hold) at the moment.

In terms of valuation, Garmin is currently trading at a forward P/E ratio of 21.08. Its industry has an average forward P/E of 21.08, so one might conclude that Garmin is trading with no discernible skew relatively.

We can also see that GRMN currently has a PEG ratio of 3.1. This metric is used similarly to the popular P/E ratio, but the PEG ratio also takes into account the expected earnings growth rate for a stock. Electronics – Diversified product stocks have, on average, a price-to-commission ratio of 1.87 based on yesterday’s closing prices.

The electronics industry – diversified products is part of the computer and technology sector. The industry currently has a Zacks Industry Rating of 165, placing it in the bottom 36% of all 250+ industries.

The Zacks Industry Ranking measures the strength of our individual industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.

You can find more information about all of these metrics and more at Zacks.com.

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