Why Garmin (GRMN) is a Top Momentum Stock for the Long-Term

Zacks highlights Garmin (GRMN) as a compelling momentum stock, currently holding a Zacks Rank #3 (Hold) with a VGM Score of B and a Momentum Style Score of A. Shares have risen 5.2% in the past four weeks, and the fiscal year 2025 Zacks Consensus Estimate has increased by $0.08 to $7.94 per share, driven by upward earnings estimate revisions; GRMN also has an average earnings surprise of 17.7%.

Analysis

Garmin (GRMN) is identified by Zacks as a compelling momentum stock, currently holding a Zacks Rank #3 (Hold) but exhibiting strong momentum characteristics with a Momentum Style Score of A and a VGM Score of B. This assessment is supported by a 5.2% increase in its share price over the past four weeks. Furthermore, GRMN's financial outlook shows positive indicators: one analyst has revised fiscal 2025 earnings estimates upward in the last 60 days, leading to an $0.08 increase in the Zacks Consensus Estimate to $7.94 per share for that period. The company also demonstrates a consistent ability to outperform expectations, boasting an average earnings surprise of 17.7%. The Zacks methodology outlined suggests that stocks with a #3 Rank but strong Style Scores (A or B), such as GRMN, are considered to possess upside potential, primarily driven by factors like favorable price trends and positive earnings estimate revisions which are key to its Momentum Score and indicative of potential market outperformance in the next 30 days.

Key Decisions for Investors

• Momentum-focused investors may find Garmin (GRMN) attractive, given its 'A' Momentum Style Score from Zacks, a 5.2% share price increase in the past four weeks, and an upward revision in the fiscal 2025 earnings consensus to $7.94 per share.
• Despite a Zacks Rank #3 (Hold), GRMN's 'B' VGM Score and a consistent 17.7% average earnings surprise suggest the stock warrants consideration, particularly as Zacks indicates such profiles can still offer upside potential.
• Investors should closely monitor upcoming earnings reports and any further changes in analyst earnings estimates for GRMN, as these are primary drivers for the Zacks rating system emphasized in the article for identifying stocks with potential to outperform.