Yahoo Finance Is Now The Time To Look At Buying Garmin Ltd. (NASDAQ:GRMN)?
Let’s talk about the popular Garmin Ltd. (NASDAQ:GRMN). The company’s shares saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGS. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Garmin’s outlook and valuation to see if the opportunity still exists.
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Is Garmin still cheap?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 14.17% above my intrinsic value, which means if you buy Garmin today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $59.47, there’s only an insignificant downside when the price falls to its real value. Furthermore, Garmin’s low beta implies that the stock is less volatile than the wider market.
What does the future of Garmin look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Though in the case of Garmin, it is expected to deliver a relatively unexciting earnings growth of 7.2%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What this means for you:
Are you a shareholder? It seems like the market has already priced in GRMN’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on GRMN, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Garmin. You can find everything you need to know about Garmin in the latest infographic research report. If you are no longer interested in Garmin, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
