Garmin Ltd (NYSE:GRMN) Combines Strong Technicals with High Growth Momentum

Garmin Ltd (NYSE:GRMN) has recently appeared through a systematic screening process combining Mark Minervini's strict Trend Template with a High Growth Momentum filter. This two-part method finds companies displaying both solid technical momentum and strong fundamental growth traits. The system favors stocks showing clear upward trends across various time periods while also confirming improved business results through earnings and revenue increases. This pairing aims to find stocks set for possible further growth by matching price strength with good operational performance.

Technical Strength and Trend Template Alignment

Garmin shows a strong technical picture that meets the main needs of Minervini's Trend Template, which is made to find stocks in clear upward trends. The template focuses on price trading above important moving averages with upward slopes, confirming continued momentum.

• Current price of $246.74 positions it above the 50-day SMA ($240.31), 150-day SMA ($217.81), and 200-day SMA ($217.49)
• All major moving averages (50, 150, 200-day) are in confirmed uptrends
• The 50-day SMA resides above both the 150-day and 200-day SMAs, indicating aligned bullish momentum across timeframes
• Shares trade approximately 53% above their 52-week low of $160.95 while remaining within 6% of the 52-week high of $261.69
• Relative Strength ranking of 86.28 indicates the stock is outperforming the vast majority of the market

This setup meets Minervini's important standards for a stock in a Stage 2 advance, where the main trend is upward and the chance of continuation is increased. The template's goal is to screen for stocks that have already shown strength and are probable to maintain that performance.

Fundamental Growth Momentum

Beyond technicals, Garmin displays the fundamental acceleration that high-growth investors look for. The company has reported notable operational results across important measures, showing clear improvement in both profitability and revenue creation.

Earnings and Revenue Expansion:

• EPS Growth (TTM) surged 33.4% year-over-year, with the most recent quarter accelerating to 37.3%
• Revenue Growth (TTM) increased 19.7%, with the last quarter showing 20.4% growth
• The company has beaten EPS estimates in 3 of the last 4 quarters by an average of 14.8%
• Revenue surprises have occurred in all of the last 4 quarters, averaging 4.4% above expectations

Profitability and Cash Flow:

• Profit margins remain strong at 22.1% in the most recent quarter
• Free Cash Flow per share grew 30.3% over the past year to $5.85
• Analyst sentiment has improved, with next-year EPS estimates revised upward by 2.3% over the past three months

This fundamental acceleration is important for Minervini's method, which suggests that stocks with good technicals paired with getting better fundamentals often represent the top chances for maintained outperformance. The "high growth momentum" filter makes sure that beyond just technical strength, the actual business is showing clear operational improvement.

Technical Analysis Overview

Garmin's technical rating stands at a perfect 10 out of 10, reflecting very good technical health across both short and long-term timeframes. The stock shows positive trends across all significant moving averages and displays consistent outperformance relative to the wider market. According to the detailed technical analysis report, GRMN presents a reasonable setup pattern with prices currently consolidating within a broader uptrend. This consolidation may offer possible entry points, with identified support zones between $233.31 and $240.31 providing logical areas for risk management.

Investment Considerations

For investors using the Minervini approach paired with growth momentum criteria, Garmin represents an interesting candidate that meets both technical and fundamental screens. The stock's fit with the Trend Template suggests it is in a sound uptrend, while its fundamental measures indicate a business going through accelerated growth. This pairing often draws institutional interest and can possibly lead to continued price growth.

Investors looking for similar chances can review additional candidates through our High Growth Momentum + Trend Template screen, which systematically finds companies meeting these strict criteria.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a financial advisor before making investment decisions. Past performance is not indicative of future results.