GARMIN LTD (NYSE:GRMN) – A Strong Growth Stock with a Technical Breakout Pattern

GARMIN LTD (NYSE:GRMN) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamental growth metrics with a recent technical breakout pattern, making it worth a closer look.

Fundamental Strengths

• Growth Potential: GRMN has demonstrated strong revenue and earnings growth, with a 26.5% increase in EPS over the past year and a 10.9% annual revenue growth rate. Future projections suggest continued expansion, with EPS expected to grow by 9.8% and revenue by 9.1%.
• Profitability: The company maintains high margins, with a 22.8% profit margin and a 58.6% gross margin, outperforming most peers in the Household Durables industry.
• Financial Health: GRMN has no debt and strong liquidity, reflected in a current ratio of 4.10 and a quick ratio of 2.91. Its Altman-Z score of 17.71 indicates low bankruptcy risk.
• Valuation: While the stock trades at a premium (P/E of 27.68), this is justified by its strong profitability and growth trajectory.

Technical Setup

• Trend Strength: Both short-term and long-term trends are positive, with the stock trading near the upper end of its recent range.
• Support & Resistance: Key support levels are found at $208.97 and $203.20, while resistance sits at $210.13 and $217.82. A breakout above $210.13 could signal further upside.
• Recent Momentum: A Pocket Pivot signal suggests accumulation, reinforcing the bullish case.

For a deeper dive, review the full fundamental report and technical analysis.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks meeting these criteria.

Disclaimer

This is not investment advice. The observations are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.