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

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 with a healthy financial position, while recent price action suggests a potential breakout. Below, we examine why GRMN stands out.

Fundamental Strengths

• Growth: GRMN has demonstrated strong revenue and earnings growth, with EPS increasing by 26.5% over the past year and revenue growing by 18.1%. Future estimates suggest continued growth at 9.75% annually for EPS and 9.1% for revenue.
• Profitability: The company maintains high margins, with a 22.76% profit margin and 25.25% operating margin, outperforming most peers in the Household Durables industry.
• Financial Health: With no debt and strong liquidity (Current Ratio of 4.10), GRMN scores a 9/10 in financial health, indicating minimal solvency risk.
• Valuation: While the stock trades at a premium (P/E of 28.30), its strong profitability and growth prospects may justify the higher multiple.

Technical Setup

• Trend Strength: Both short-term and long-term trends are positive, with the stock trading near its 52-week high.
• Support Levels: Key support zones exist between $197.77 - $207.19, reinforced by moving averages and trendlines.
• Recent Performance: GRMN has outperformed 79% of all stocks in the market over the past year and 87% of its industry peers.
• Breakout Potential: The stock is testing resistance near $217.82, and a decisive move above this level could signal further upside.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks meeting these criteria and is updated daily.
For a deeper analysis, check the full fundamental report and technical report.

Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.