Q2 STOCKS TO BUY

Could Garmin Stock Get Your Portfolio Back on Track?

Shares of Garmin have declined in price over 40% from its all-time high

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Garmin Ltd. (NYSE:GRMN) is a multinational technology company that specializes in GPS technology for automotive, aviation, marine, outdoor, and sport activities. GRMN products include wearable technology, competing with activity tracker and smartwatch consumer developers such as Fitbit and Apple. At last glance, GRMN is kicking off Monday on a positive note, trading up 0.7% at $101.35.

The event schedule is full for GRMN in the next few weeks. Garmin is scheduled to present at the JP Morgan TMC Annual Conference on May 24, the Baird Global Tech Conference on June 7, and Garmin will also host their 2022 Annual Shareholder Meeting on June 10.

Garmin stock has decreased about 28% year-over-year and is currently trading down 43% since peaking at an all-time high of $178.81 last August. Additionally, shares of GRMN have dropped in price 25% year-to-date and a have shed 8% over the past month.

The GPS company provides investors exceptionally safe fundamentals for a relatively low valuation. Garmin stock trades at forward price-earnings ratio of 16.86 and a price-sales ratio of 3.85. GRMN also offers a solid dividend yield of 2.66% with a forward dividend of $2.68, making the reward potential attractive for long-term and dividend investors. In addition, Garmin holds an amazing balance sheet with $1.79 billion in cash and just $82.13 million in total debt.

Albeit amid light absolute volume, options traders have favored bullish bets in recent weeks. This is per Garmin stock's 10-day call/put volume ratio of 12.55 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands in the 91st annual percentile. 

Now might be a good time to weigh in on the GPS name's next move with options. The stock's Schaeffer's Volatility Scorecard (SVS) sits at an 89 out of 100, meaning the security has exceeded option traders' volatility expectations during the past calendar year.

 
 

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