Garmin's Growth Signals Wearables Surge: Stocks to Watch

Core Insights - Garmin's Q4 results and 2025 guidance led to a significant increase in share price, driven by strong performance in consumer products, particularly in fitness and outdoor segments, which experienced high double-digit growth due to rising demand for wearables [1][6] Company Performance - Garmin reported net revenue of $1.82 billion for Q4, marking a 23$7.80 for 2025 [7] Dividend and Cash Flow - Garmin's dividend yield is approximately 1.25%, with a proposed 20% increase for 2025 pending board approval, and the payout ratio is less than 40% of the 2025 earnings outlook, supported by a strong balance sheet [8] Market Trends - The wearables market is projected to exceed $70 billion by the end of 2024, with a mid-teens CAGR anticipated through the next decade, providing a favorable environment for Garmin and its competitors [2] - Competitors such as Apple, Meta Platforms, Logitech, and Ambarella are also positioned to benefit from the growing wearables market, with each company focusing on innovative product launches and advancements in technology [2][3][4][5] Stock Performance - Garmin's stock has reached new all-time highs, indicating a continuation of the uptrend, despite some resistance observed in price action [9] - Institutional activity has surged, with significant buying volume outpacing selling, suggesting strong market interest in Garmin shares [9]