Garmin (GRMN) Falls More Steeply Than Broader Market: What Investors Need to Know

Garmin (GRMN) closed at $234.18 in the latest trading session, marking a -1.05% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.1%. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, lost 0.33%. Prior to today's trading, shares of the maker of personal navigation devices had gained 1.38% lagged the Computer and Technology sector's gain of 5.94% and the S&P 500's gain of 2.57%.Investors will be eagerly watching for the performance of Garmin in its upcoming earnings disclosure. The company is expected to report EPS of $1.98, down 0.5% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.78 billion, showing a 12.35% escalation compared to the year-ago quarter. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.07 per share and a revenue of $7.05 billion, indicating changes of +9.2% and +11.9%, respectively, from the former year. Investors should also take note of any recent adjustments to analyst estimates for Garmin. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.43% higher. Garmin currently has a Zacks Rank of #2 (Buy). From a valuation perspective, Garmin is currently exchanging hands at a Forward P/E ratio of 29.34. For comparison, its industry has an average Forward P/E of 20.93, which means Garmin is trading at a premium to the group. We can additionally observe that GRMN currently boasts a PEG ratio of 2.63. 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 average PEG ratio for the Electronics - Miscellaneous Products industry stood at 1.88 at the close of the market yesterday. The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 41% echelons of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow GRMN in the coming trading sessions, be sure to utilize Zacks.com. Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum 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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks