Garmin’s Instinct 3 Series Boosts Portfolio: Should You Buy the Stock?

Garmin (GRMN Quick QuoteGRMN – Free Report) has been on a remarkable trajectory, with its stock rallying 68.9% over the past year. This stock has significantly outperformed the Electronics – Miscellaneous Products industry’s decline of 28.3% and the Zacks Computer and Technology sector’s growth of 38.1%.

Over the same time frame, Garmin also outperformed its industry peers, including Electrovaya (ELVA Quick QuoteELVA – Free Report) , Greenland Technologies (GTEC Quick QuoteGTEC – Free Report) and Kopin (KOPN Quick QuoteKOPN – Free Report) . In the past year, shares of ELVA, GTEC and KOPN have plunged 39%, 28.7% and 28.3%, respectively.

This outperformance reflects investors’ confidence in GRMN’s robust product portfolio and strong financial performance. Now, with the launch of its Instinct 3 Series, Garmin is gearing up to sustain this momentum and further solidify its market leadership.

The latest in Garmin’s rugged smartwatch lineup, the Instinct 3 Series, comes with a brilliant AMOLED display or a solar-powered one for longer battery life. With a built-in flashlight on each model and a metal-reinforced bezel for exceptional durability, the Instinct 3 Series was created with adventurers in mind.

With sports applications for hiking, running, cycling, golfing, fishing, skiing and more, the Instinct 3 Series is the ideal partner for outdoor activities. Apart from pre-installed sports applications for outdoor pursuits, the Instinct 3 Series is brimming with applications for sports like basketball, pickleball, cardio, HIIT, and indoor and outdoor track running. With prices starting at $399.99 for the solar model and $449.99 for the AMOLED variant, the Instinct 3 Series caters to a diverse consumer base.

Strengthening Garmin’s Market Position

Garmin’s strategic focus on expanding its product portfolio aligns with the growing demand for health and fitness wearables. The Instinct 3 Series not only enhances Garmin’s reputation in the outdoor and adventure niche but also positions the company to compete more effectively against rivals like Apple and Fitbit. The Instinct 3’s durability, cutting-edge features and affordability make it a strong contender in the wearables market, potentially driving revenue growth in 2025 for Garmin.

Garmin has established itself as a leader in technological advancements owing to its frequent product releases. The Venu, Lily and Vivoactive smartwatch series from GRMN was a bold move since it offers improved sleep tracking, stress and respiration analysis, along with other health and wellness features.

Wall Street Seems Optimistic About Garmin

Garmin has a strong history of reporting strong quarterly performance with its earnings surpassing the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 28.5%. Analysts seem to be optimistic about the company’s near-term growth prospects as well.

The Zacks Consensus Estimate for Garmin’s 2025 earnings has been revised upward by 9.1% to $7.66 per share, indicating year-over-year growth of 9.3%. The consensus mark for revenues is pegged at $6.53 billion, suggesting a year-over-year increase of 6.3%.

Conclusion: Buy GRMN Stock for Now

With the Instinct 3 Series poised to capture consumer interest, Garmin enters 2025 with strong momentum. The company’s focus on innovation and expanding its market share makes it a compelling investment option for investors looking to benefit from the growing wearables market. GRMN’s proven ability to adapt and innovate positions it well for continued success in the year ahead.

GRMN currently sports a Zacks Rank #1 (Strong Buy), implying that existing investors should keep holding the stock while new buyers should accumulate the stock. You can see the complete list of today’s Zacks #1 Rank stocks here.