Why Garmin (GRMN) Dipped More Than Broader Market Today

Garmin (GRMN) ended the recent trading session at $231.89, demonstrating a -1.31% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.22%. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq depreciated by 1.35%. The maker of personal navigation devices's stock has climbed by 2.74% in the past month, exceeding the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 1.56%.Investors will be eagerly watching for the performance of Garmin in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.27, signifying a 4.61% increase compared to the same quarter of the previous 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. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.53 per share and revenue of $7.98 billion, indicating changes of +11.33% and +10.12%, respectively, compared to the previous year. Investors should also note any recent changes to analyst estimates for Garmin. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained stagnant. Right now, Garmin possesses a Zacks Rank of #3 (Hold). In terms of valuation, Garmin is presently being traded at a Forward P/E ratio of 24.65. This valuation marks a discount compared to its industry average Forward P/E of 30.06. One should further note that GRMN currently holds a PEG ratio of 2.78. 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. The Electronics - Miscellaneous Products industry had an average PEG ratio of 1.68 as trading concluded yesterday. The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 60, placing it within the top 25% of over 250 industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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. Beyond Nvidia: AI's Second Wave Is HereThe 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 >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks