Garmin Ltd shares are closing in on important technical levels. The technical chart pattern suggests that the currently tested resistance will be broken and new upside potential arises while volatility is likely to increase. Investors could get ahead of this signal in order to benefit from a better risk/reward ratio.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The group's high margin levels account for strong profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● The group usually releases upbeat results with huge surprise rates.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the past twelve months, EPS forecast has been revised upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● The stock is in a well-established, long-term rising trend above the technical support level at 85.34 USD
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● Technically, the stock approaches a strong medium-term resistance at USD 98.29.
● With an enterprise value anticipated at 4.53 times the sales for the current fiscal year, the company turns out to be overvalued.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
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Garmin Ltd. is one of the world's leaders in designing, producing, and marketing satellite geopositioning systems (GPS). The activity is organized around two families of products:
- marine and land geopositioning systems: tracers and sensors, pocket assistants, automobile guidance systems, sporting equipment (equipped with detectors for speed, distance traveled, heart rate, etc.);
- aerial geopositioning equipment: high-frequency communication transmitters, aerial display products, digital transponders (for transmitting altitude and flight number, broadcast by towers and control radar systems), beacon receivers, audio panels, etc.
Net sales break down by area of activity between outdoor activities (32.5%), sports and fitness (25.7%), marine (17.5%), aviation (16.2%), and automotive (8.1%).
At the end of 2023, the group had 9 production sites located in the United States (3), Taiwan (3), China, the Netherlands, and Poland.
Net sales are distributed geographically as follows: Americas (50%), Europe/Middle East/Africa (34%) and Asia/Pacific (16%).
GARMIN LTD. 
