Garmin Surges 28% in 3 Months: Buy, Sell or Hold the Stock?

Garmin GRMN shares have soared 27.8% in the past three months, outperforming the Electronics - Miscellaneous Products industry’s decline of 23.6% and the broader Zacks Computer and Technology sector’s return of 11.5%.Over the same time frame, Garmin also outpaced its industry peers, including Electrovaya ELVA, Greenland Technologies GTEC and Kopin KOPN. In the past three months, shares of ELVA and KOPN have risen 12.4% and 19%, respectively, while GTEC stock plunged 24.9%. This outperformance can be attributed to the stronger-than-expected third-quarter 2024 results across its segments followed by solid sales execution and prudent cost management. Increasing momentum in the Auto OEM segment, primarily due to expansion in domain controllers, aided the top-line growth. Growing demand for wearables drove the performance in the Fitness segment. Additionally, solid traction in the Outdoor and Marine are other major positives.Garmin Ltd. Price and Consensus Garmin Ltd. price-consensus-chart | Garmin Ltd. QuoteGarmin Raises 2024 GuidanceGarmin raised its 2024 revenue guidance from $5.95 billion to $6.12 billion. Pro-forma earnings guidance increased from $6 per share to $6.85 per share.The Zacks Consensus Estimate for 2024 revenues is pegged at $6.10 billion, indicating growth of 16.6% year over year. The consensus mark for earnings is pegged at $7.01 per share, up by 15.3% over the past 60 days, suggesting growth of 25.4% year over year.The revenue growth rate for the Marine segment has been maintained at 15% for the year. However, Garmin has raised its growth estimate for the Outdoor segment to 13% while lowering its Auto OEM guidance to 40% and providing a flat revenue estimate for Aviation in 2024.GRMN anticipates its full-year 2024 free cash flow to be approximately $1.1 billion.Strong Liquidity Aids GRMN’s ProspectsGarmin boasts strong liquidity, holding approximately $3.5 billion in cash, cash equivalents and marketable securities as of Sept. 28, 2024, up from $3.4 billion as of June 29, 2024.In the third quarter of 2024, Garmin generated an operating cash flow of $258 million and a free cash flow of $219 million. In the first nine months of 2024, the company generated operating cash flow and free cash flow of $949 million and $840 million, respectively.Expanding Portfolio Aids GRMN’s ProspectsGarmin’s constant product releases have placed it to be in the forefront of technological innovations. GRMN’s Venu, Lily and Vivoactive smartwatch series, featuring new health and wellness capabilities with enhanced sleep tracking, stress and respiration analysis is a positive move.The Lily 2 Active is the newest model in Garmin's portfolio of stylish smartwatches with integrated GPS and well-liked connected wellness, and health features. With its classic design, metal watch case, two buttons and hidden display with a distinctive patterned lens, the Lily 2 Active is Garmin's smallest smartwatch with GPS.Garmin’s latest launch of the JL Audio SlamPak Audio System options, tailored for Polaris SxS vehicles, such as the Polaris RZR Pro XP, Pro R and Turbo R models1, is a remarkable development. With four options available: either using the M3 or M6 speakers, a MediaMaster 55, or a factory-installed Ride Command as the source, the SlamPak kit improves the audio experience for both adventurers and outdoor enthusiasts by allowing equipment to be customized to fit particular SxS vehicles.With the release of the brand-new Approach R50 premium launch monitor and golf simulator, Garmin boasts yet another notable achievement. It allows golfers to practice at any driving range or home, year-round. With an enhanced version of Home Tee Hero, the Approach R50 boasts a 10-inch integrated color touchscreen display and more than 43,000 preloaded golf courses worldwide.Garmin recently announced the largest dive computer from Garmin, the Descent X50i, which boasts a bright 3" color touchscreen display. With the use of SubWave sonar technology, divers can use the Descent X50i to communicate with one another underwater and keep track of each other's distance, depth and tank pressure when visibility may be poor. Additionally, they can delve deeper thanks to their integrated backup dive light, 20 ATM dive rating and metal buttons that don't leak.Garmin unveiled the G3000 PRIME, their most sophisticated integrated flight deck to date. The G3000 PRIME utilizes cutting-edge technologies with a modern user interface and sophisticated connectivity to maximize safety potential and efficiency while reducing pilot workload throughout the entire flight.Zacks Rank & ValuationGarmin stocks are not so cheap as suggested by a Value Style Score of D. GRMN stock is trading at a premium with a forward 12-month Price/Sales of 6.56X compared with the industry’s 4.30X.However, GRMN’s innovative edge and continued efforts to stand out in the market through a new business strategy justifies the premium valuation and makes it a compelling buy for investors.GRMN currently sports a Zacks Rank #1 (Strong Buy), implying that existing investors should keep holding the stock while new buyers should accumulate the stock. You can see the complete list of today’s Zacks #1 Rank stocks here.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Garmin Ltd. (GRMN): Free Stock Analysis Report Kopin Corporation (KOPN): Free Stock Analysis Report Greenland Technologies Holding Corporation (GTEC): Free Stock Analysis Report Electrovaya Inc. (ELVA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks