Garmin (GRMN) seems a sexy choose given a noticeable enchancment within the firm’s earnings outlook. The stock has been a robust performer these days, and the momentum may proceed with analysts nonetheless elevating their earnings estimates for the corporate.
The upward development in estimate revisions for this maker of private navigation gadgets displays rising optimism of analysts on its earnings prospects, which ought to get mirrored in its stock price. In any case, empirical analysis reveals a robust correlation between tendencies in earnings estimate revisions and near-term stock price actions. Our stock ranking instrument — the Zacks Rank — has this perception at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Robust Purchase) to a Zacks Rank #5 (Robust Promote), has a formidable externally-audited observe file of outperformance, with Zacks #1 Ranked stocks producing a median annual return of +25% since 2008.
Consensus earnings estimates for the subsequent quarter and full 12 months have moved significantly increased for Garmin, as there was sturdy settlement among the many protecting analysts in elevating estimates.
The chart under reveals the evolution of ahead 12-month Zacks Consensus EPS estimate:
12 Month EPS
Present-Quarter Estimate Revisions
For the present quarter, the corporate is anticipated to earn $1.01 per share, which is a change of -20.79% from the year-ago reported quantity.
During the last 30 days, the Zacks Consensus Estimate for Garmin has elevated 32.95% as a result of three estimates have moved increased in comparison with no destructive revisions.
Present-12 months Estimate Revisions
For the total 12 months, the earnings estimate of $4.06 per share represents a change of -8.72% from the year-ago quantity.
There was an encouraging development in estimate revisions for the present 12 months as nicely. Over the previous month, 5 estimates have moved up for Garmin versus no destructive revisions. This has pushed the consensus estimate 26.07% increased.
Favorable Zacks Rank
The promising estimate revisions have helped Garmin earn a Zacks Rank #2 (Purchase). The Zacks Rank is a tried-and-tested ranking instrument that helps buyers successfully harness the ability of earnings estimate revisions and make the appropriate funding resolution. You possibly can see the entire listing of right this moment’s Zacks #1 Rank (Robust Purchase) stocks right here.
Our analysis reveals that stocks with Zacks Rank #1 (Robust Purchase) and a couple of (Purchase) considerably outperform the S&P 500.
Garmin shares have added 6% over the previous 4 weeks, suggesting that buyers are betting on its spectacular estimate revisions. So, you may think about including it to your portfolio immediately to profit from its earnings development prospects.
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Garmin Ltd. (GRMN): Free Stock Evaluation Report
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