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Schaffhausen, Switzerland-based Garmin Ltd. (GRMN) designs, develops, manufactures, markets, and distributes a range of wireless devices. Valued at $34.7 billion by market cap, the company designs, develops, manufactures, and markets hand-held, portable, and fixed mount GPS-enabled products serving automotive, aviation, marine, outdoor, and fitness markets.
Shares of this leading provider of navigation and communication devices have outperformed the broader market considerably over the past year. GRMN has gained 74.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.7%. In 2024, GRMN stock is up 40.5%, surpassing SPX’s 18% rise on a YTD basis.
Zooming in further, GRMN’s outperformance looks more pronounced compared to the iShares Future Metaverse Tech And Communications ETF (IVRS). The exchange-traded fund has gained about 18.8% over the past year. Moreover, GRMN’s double-digit gains on a YTD basis outshine the ETF’s 2.5% returns over the same time frame.
GRMN’s solid price performance can be attributed to the supply of in-cabin domain controllers and high-tech vehicle infotainment systems to automakers. The company has also reaped the benefits of its acquisition of JL Audio. With a focus on connected devices and new technologies, GRMN has showcased an impressive performance and is well-positioned for long-term growth.
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.
For the current fiscal year, ending in December, analysts expect GRMN’s EPS to grow 8.2% annually to $6.05 on a diluted basis. The company’s earnings surprise history is promising. It beat the consensus estimate in each of the last four quarters.
Among the six analysts covering GRMN stock, the consensus is a “Hold.” That’s based on one “Strong Buy” rating, four “Holds,” and one “Moderate Sell.”
The configuration has been consistent over the past months.
On Aug. 1, Barclays PLC (BCS) analyst maintained a “Hold” rating on GRMN with a price target of $181.
While GRMN currently trades above its mean price target of $173.20, the Street-high price target of $210 suggests an upside potential of 16.2%.
On the date of publication, Neha Panjwani 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.
