Here is Why Garmin Inventory Soared in February

GPS-enabled system maker Garmin (NYSE: GRMN) let buyers know that enterprise is booming. Its fourth-quarter monetary replace and 2026 steerage helped the inventory soar 25.4% in February, in keeping with information supplied by S&P International Market Intelligence.

Even after a standout 2025 that may result in robust comparisons this yr, administration continues to be predicting 9% development. Traders can have a look at a historical past of conservative forecasts and conclude that double-digit development is probably going once more this yr, making Garmin inventory a stable purchase.

Will AI create the world’s first trillionaire? Our crew simply launched a report on the one little-known firm, referred to as an “Indispensable Monopoly” offering the crucial expertise Nvidia and Intel each want. Proceed »

Garmin’s health phase has grown to change into its largest. After notching 42% year-over-year development in This autumn, the class has averaged 32% development every quarter over the previous two years. Garmin’s health merchandise embody extra than simply smartwatches and different gadgets for working, biking, golf, and different sports activities. It presents novel options in digital well being and health. The corporate has enhanced its premium Join+ providing with AI-powered diet monitoring and insights to assist customers obtain diet and health objectives.

Health is not the one space the place Garmin is prospering. The corporate achieved report income throughout all 5 segments final yr, with aviation and marine additionally posting double-digit development within the fourth quarter. For the complete yr, Garmin’s income surged 15%, almost double the 8% development administration initially predicted.

That is extra of a sample than an anomaly. The 2024 income development of 20% adopted the corporate’s preliminary estimate of 10% development over 2023. Traders ought to issue administration’s traditionally conservative steerage into their choice on whether or not the inventory is an effective worth. That helps clarify why the inventory jumped final month.

Steerage for 9% income development and barely larger earnings per share (EPS) development provides administration confidence to spice up returns to shareholders, too. It proposed to extend its quarterly dividend from $0.90 to $1.05 per share. That is a 17% enhance.

The corporate itself thinks its inventory continues to be a very good purchase, too. Garmin initiated a brand new $500 million share repurchase plan. That replaces the prior $300 million plan, which had solely $56 million remaining.

There is not any scarcity of money to perform each shareholder-friendly strikes. Garmin generated $1.36 billion in free money circulation in 2025 and ended the yr with about $4.1 billion in money and marketable securities. With no debt on the stability sheet, buyers ought to think about that monetary power when finding out valuation.

Its ahead price-to-earnings (P/E) ratio of 26 needs to be adjusted to mirror its money place and administration’s tendency for conservative steerage. That may carry its efficient P/E all the way down to about 22, about 10% beneath its three-year common. Which means Garmin shares nonetheless appear like a very good worth right now, even after the February surge.

Ever really feel such as you missed the boat in shopping for essentially the most profitable shares? Then you definately’ll need to hear this.

On uncommon events, our knowledgeable crew of analysts points a “Double Down” inventory suggestion for firms that they suppose are about to pop. When you’re nervous you’ve already missed your likelihood to take a position, now could be the very best time to purchase earlier than it’s too late. And the numbers communicate for themselves:

• Nvidia: in case you invested $1,000 after we doubled down in 2009, you’d have $461,216!*

• Apple: in case you invested $1,000 after we doubled down in 2008, you’d have $49,025!*

• Netflix: in case you invested $1,000 after we doubled down in 2004, you’d have $534,008!*

Proper now, we’re issuing “Double Down” alerts for 3 unbelievable firms, accessible if you be part of Inventory Advisor, and there is probably not one other likelihood like this anytime quickly.

See the three shares »

*Inventory Advisor returns as of March 2, 2026

Howard Smith has positions in Garmin. The Motley Idiot has positions in and recommends Garmin. The Motley Idiot has a disclosure coverage.

Here is Why Garmin Inventory Soared in February was initially printed by The Motley Idiot