Garmin stock has surged 45.3% in the past year, with positive future outlook

From Nasdaq: 2025-03-13 10:34:00

Garmin’s stock has surged 45.3% in the past year, outperforming the Computer and Technology sector, XLK ETF, and S&P 500. The company also outperformed the Electronics – Miscellaneous Products industry, which declined by 47.7% in the same period. Investors are questioning whether to buy Garmin shares for continued momentum.

Garmin dominates the fitness technology market with products like fitness watches tailored to specific activities. Its fitness segment is the second-largest revenue contributor, with a 32% revenue growth in 2024. The Fitness segment is projected to have a CAGR of 8.4% from 2025 to 2027, driven by Garmin’s innovative offerings.

Strong growth in Garmin’s Outdoor and Marine segments has propelled the company to initiate a 2025 revenue guidance of around $6.80 billion. The company’s subscription-based services on connected devices, like inReach Satellite solution and Garmin Connect Premium, contribute to recurring revenues. Garmin expects aviation revenues to grow by approximately 5% in 2025.

Garmin’s 2025 earnings estimates show an upward trend, with a consensus estimate of $8.25 per share, indicating an 11.6% year-over-year increase. The company has beaten earnings estimates in the last four quarters, with an average surprise of 28.85%. Garmin’s stock is currently trading at a premium, with a forward P/E ratio of 26.01X.

With robust growth in Fitness, Outdoor, and Marine products, and a recovery in Auto OEM and Aviation segments, Garmin’s future looks promising. The company holds a Zacks Rank #1 (Strong Buy), making it an attractive investment opportunity. Analysts recommend accumulating Garmin stock now for potential gains.



Read more at Nasdaq: Garmin Rises 45% in a Year: Is it the Right Time to Buy the Stock?