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Garmin Ltd. (GRMN), headquartered in Schaffhausen, Switzerland, is a global leader in GPS technology and wearable devices, offering a wide range of products and services for aviation, automotive, marine, fitness, and outdoor markets. With a market cap of $33.16 billion, Garmin plays a pivotal role in delivering innovative and reliable navigation, communication, and fitness solutions to customers worldwide, enhancing safety, performance, and convenience across various industries.
Companies valued at $10 billion or more are classified as "large-cap" stocks, and Garmin exemplifies this status, highlighting its substantial scale, stability, and influence in the GPS technology and wearable devices market. As a global leader in navigation and fitness solutions, Garmin’s large-cap standing reflects its diverse portfolio of innovative products across aviation, automotive, marine, and outdoor sectors, supporting enhanced performance and safety for consumers and industries worldwide.
GRMN shares are trading 6.4% below their 52-week high of $184.42, which they hit on Sep. 9. The stock has gained 8.2% over the past three months, outperforming the broader S&P 500 Index ($SPX), which has gained 3.7% over the same time frame.
In the longer term, GRMN is up 34.3% on a YTD basis, and the shares have gained 62.7% over the past 52 weeks. In comparison, the SPX has gained 18.1% in 2024 and rallied 26.6% over the past year.
To confirm its bullish trend, GRMN has been trading above its 50-day moving average since early August and the 200-day moving average since late October last year.
On Jul. 31, GRMN shares closed down more than 4% after reporting its Q2 earnings results. Its revenue stood at $1.5 billion, up 14.1% year over year. Its adjusted EPS of $1.58 surpassed Wall Street estimates of $1.41. The company adjusted its full-year guidance and expects revenue to be $6 billion. On Sep. 13, Garmin's stock dropped 6.1% after Barclays downgraded it to "sell" and reduced its price target from $181 to $133.
Highlighting the contrast in performance, GRMN's competitor, Motorola Solutions, Inc. (MSI), has outperformed both the stock and the broader index. MSI has gained 41.6% on a YTD basis.
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 $173.20, which suggests a marginal premium to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
