Garmin Capitalizing on Heavy Demand

The company builds GPS equipment and wearable technology with a focus on automotive, aviation, marine, outdoors, and fitness markets. The automotive and fitness businesses have produced the most growth recently, and its CEO said there is still heavy demand for its offerings.

In its first-quarter earnings report, GRMN increased revenue 20% on a year-over-year basis, with all lines of business growing. That development is showing in the bottom line too. Its diluted per-share earnings shot up 36% year-over-year. And analysts expect more revenue growth when the company announces second-quarter earnings on July 31.

It’s no wonder GRMN shares are up 37% this year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.

Big Money Steers Towards Garmin

Institutional volumes reveal plenty. In the last year, GRMN has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in GRMN shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Garmin.

Garmin Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, GRMN has strong sales and earnings growth:

• 3-year sales growth rate (+8%)
• 3-year sales earnings rate (+10.5%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +9.7%.

Now it makes sense why the stock has been powering to new heights. GRMN has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Garmin has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year, with more potentially on the horizon. The blue bars below show when GRMN was a top pick…driving value up:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Garmin Price Prediction

The GRMN rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds positions in GRMN in personal and managed accounts at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.