Invest in the Most Intellectual Expansion Share with a $2,000 Budget Immediately
If you're in search of an enticing growth stock in this expensive market, Garmin (GRMN 0.39%) deserves a spot on your radar. Although its shares have seen a rally since early 2023, hitting a 10-year high, look beyond the price tag. Garmin has earned its premium valuation and is still a promising investment for excellent returns.
Let's delve into why Garmin is a top choice for your watchlist:
A Year of Success
Garmin had an outstanding fiscal 2024. Operating income surged to $1.6 billion, with an operating profit margin of 25%, up from 21% in 2023. Revenue growth was impressive, too, reaching 20% due to growth in each main product category. The fitness division drove the most gains with a 32% revenue increase for the year, while aviation was the slightest performer with a 4% uptick. Innovation, rather than price hikes, powered these successes, indicating continued growth potential for Garmin. [Source: Enrichment Data]
Cash and Dividends
Garmin is a cancer-free business with over $1 billion in free cash flow for two consecutive years. As of 2025, Garmin boasts a generous $3.7 billion cash and securities balance. This ample cash reserve ensures the company's dividend payments, which rose to $0.90 per share in 2024, remain secure. [Source: Enrichment Data]
Worth the Investment?
At 31 times earnings and 7 times sales, Garmin's valuation is near its all-time high. The risk of overpaying for this successful company is undeniable, but it's a bargain compared to technology titan Apple's $39 earnings multiple and $7 sales multiple. Garmin's 25% operating profit margin isn't too far from Apple's 32%, and while Garmin's scale and brand strength don't compete with Apple's, its revenue growth is outpacing Apple's.
Cautious investors may want to watch Garmin for a chance to invest at a lower price. Two year market rallies of 20% or more make this a possibility. However, Garmin's long-term returns should be solid, as long as the company continues its trend of innovative product releases. [Source: Enrichment Data]
Smart investors know their formula for excellent long-term returns involves market-share gain, rising profit margins, and increasing dividends and stock buybacks. Garmin's performance so far shows it's making that recipe a reality.
Garmin's strong financial performance in 2024 significantly Contributed to its earnings, with revenue growth reaching 20% due to its focus on innovation rather than price hikes. (finance, earnings, innovation)
The tech giant Garmin has a substantial cash reserve of $3.7 billion as of 2025, which supports its generous dividend payments and indicates its ability to continue such payments. (money, dividends, Garmin, cash)
Investors who are keen on innovative companies in the finance sector might consider purchasing Garmin stocks, given its ambitious plans for product releases, aimed to drive its growth till 2025 and beyond. (investing, Garmin, innovative, 2025)
Garmin's share buybacks could be an appealing feature for investors, demonstrating the company's confidence in its future financial performance and its commitment to returning value to shareholders. (buybacks, Garmin, future financial performance, shareholders)