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

Garmin (GRMN) closed at $104.61 in the latest trading session, marking a -0.19% move from the prior day. This change lagged the S&P 500's daily gain of 0.31%. Elsewhere, the Dow gained 0.05%, while the tech-heavy Nasdaq added 0.14%.

Coming into today, shares of the maker of personal navigation devices had lost 1.15% in the past month. In that same time, the Computer and Technology sector lost 3.62%, while the S&P 500 lost 1.38%.

Investors will be hoping for strength from Garmin as it approaches its next earnings release. On that day, Garmin is projected to report earnings of $1.40 per share, which would represent a year-over-year decline of 16.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.35 billion, up 1.46% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.90 per share and revenue of $5.45 billion, which would represent changes of +1.37% and +9.4%, respectively, from the prior year.

Any recent changes to analyst estimates for Garmin should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Garmin currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Garmin is holding a Forward P/E ratio of 17.76. For comparison, its industry has an average Forward P/E of 16.61, which means Garmin is trading at a premium to the group.

We can also see that GRMN currently has a PEG ratio of 3.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Electronics - Miscellaneous Products stocks are, on average, holding a PEG ratio of 1.98 based on yesterday's closing prices.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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.

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