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With a market cap of $39.8 billion, Garmin Ltd. (GRMN) is a global leader in designing, manufacturing, and marketing GPS-enabled navigation and communication devices. It operates across five segments: outdoor, fitness, marine, auto, and aviation, offering a diverse portfolio of products ranging from smartwatches and cycling computers to aviation avionics and marine equipment.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Garmin fits this criterion perfectly. Based in Schaffhausen, Switzerland, Garmin serves consumers and businesses worldwide through independent retailers, distributors, OEMs, and online channels.
Shares of the GPS device maker are trading 15.4% below its 52-week high of $246.50. GRMN has risen 1.4% over the past three months, outperforming the broader Dow Jones Industrials Average’s ($DOWI) 1.3% dip over the same time frame.
In the longer term, GRMN stock is up marginally on a YTD basis, outpacing DOWI’s 1.8% decrease. In addition, shares of Garmin have increased 42.2% over the past 52 weeks, compared to DOWI’s 6.9% return over the same time frame.
GRMN has been trading above its 50-day and 200-day moving averages since last year.
Shares of Garmin surged 12.6% on Feb. 19 after the company crushed Q4 2024 expectations, delivering $1.8 billion in revenue and adjusted EPS of $2.41, reflecting 23% and 40% year-over-year growth, respectively. Strong performance in key segments, particularly a 31% surge in fitness revenue driven by robust demand for wearables like the Lily 2 Active smartwatch, further fueled investor optimism.
Garmin's full-year 2024 revenue of $6.3 billion surpassed its own conservative guidance and analyst estimates. Additionally, the company’s 20% dividend hike, debt-free balance sheet, and bullish 2025 guidance reinforced investor confidence.
Moreover, Garmin has outperformed its rival, Keysight Technologies, Inc. (KEYS), which has gained 3.5% over the past 52 weeks and saw a 3.6% decline on a YTD basis.
Despite GRMN’s strong performance, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from the six analysts covering the stock, and as of writing, it is trading below the mean price target of $224.40.
