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Garmin Ltd. (GRMN), headquartered in Schaffhausen, Switzerland, is a global leader in GPS technology and navigation solutions, serving diverse industries, including automotive, aviation, marine, fitness, and outdoor recreation. With a market cap of $40.5 billion, the company is committed to innovation, delivering cutting-edge products that enhance operational efficiency and enrich user experiences worldwide.
Companies with a market cap of $10 billion or more are classified as “large-cap stocks,” Garmin exemplifies this category. With a commitment to long-term value, sustainability, and technological advancement, Garmin is pivotal in enhancing connectivity, improving operational efficiency, and enriching lifestyles worldwide.
Shares of this leading provider of navigation and communication devices have fallen 7.5% from its 52-week high of $222.97, hit on Dec. 11. The stock is up 21.4% over the past three months, outperforming the broader Nasdaq Composite’s ($NASX) 10.4% gain during the same time frame.
Over the longer term, GRMN surged 63.1% over the past 52 weeks, while the NASX has rallied 30.1% over the past year.
Since late October, GRMN has consistently stayed above its 50-day moving average and has been trading above its 200-day moving average for the past year, indicating a sustained bullish trend.
Garmin has outperformed the broader market indices, driven by strong demand in its Fitness, Marine, Outdoor, and Aviation segments, alongside successful new product launches. On Oct. 30, the company reported an impressive Q3 earnings result, driving the stock up by 23.3%. Adjusted EPS grew 41% to $1.99, beating Wall Street estimates by 36.3%. Revenue increased 24% to $1.59 billion, exceeding the forecast of $1.44 billion. Based on strong performance in the first three quarters of 2024, Garmin has raised its full-year guidance, now expecting revenue of approximately $6.12 billion and pro forma EPS of $6.85.
Highlighting the contrast in performance, GRMN's competitor, Motorola Solutions, Inc. (MSI), has underperformed the stock. MSI has gained 46.9% over the past 52 weeks.
Despite the stock's strong recent price performance, analysts are cautious about GRMN's prospects. The stock has a consensus rating of "Hold" from six analysts in coverage. The mean price target is $196.80, which indicates that the stock trades at a premium.
