Stock of the Day

March 17, 2020

Garmin (GRMN)

$284.34
-$0.85 (-0.3%)
Market Cap: $55.00B

About Garmin

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform. The company's Outdoor segment offers adventure watches, outdoor handhelds and satellite communicators, golf devices, consumer automotive devices, and dog devices, as well as InReach and Gramin response communication device. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and various services. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, audio products and accessories, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment units; and software, map database, cameras, wearables, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.

Garmin Bull Case

Here are some ways that investors could benefit from investing in Garmin Ltd.:

  • The current stock price is around $292, reflecting a strong performance in the market and indicating investor confidence.
  • Garmin Ltd. reported a significant increase in quarterly revenue, up 11.4% year-over-year, showcasing robust business growth and demand for its products.
  • The company has a solid net margin of 24.47%, which suggests efficient management and profitability, making it an attractive option for investors seeking stable returns.
  • Garmin Ltd. has set an ambitious FY 2026 earnings per share (EPS) guidance, indicating confidence in future performance and potential for growth.
  • Recent analyst ratings have been favorable, with several upgrades and a consensus rating of "Moderate Buy," suggesting positive sentiment among market experts.

Garmin Bear Case

Investors should be bearish about investing in Garmin Ltd. for these reasons:

  • The price-to-earnings (P/E) ratio is relatively high at 32.10, which may indicate that the stock is overvalued compared to its earnings, potentially leading to a price correction.
  • Insider selling has been noted, with significant shares sold recently, which could signal a lack of confidence from those closest to the company.
  • Despite positive growth, the P/E/G ratio of 3.37 suggests that the stock may not be growing fast enough to justify its current valuation, raising concerns for value investors.
  • The beta of 0.87 indicates that Garmin Ltd. is less volatile than the market, which may limit potential high returns for aggressive investors looking for growth.
  • Recent analyst price targets vary significantly, with some suggesting a price objective as high as $370, which may create uncertainty about the stock's future performance.
← Previous Stock of the DayNext Stock of the Day →

Recent News