The Smartest Growth Stock to Buy With $2,000 Right Now

Core Viewpoint - Garmin is positioned as an attractive growth stock despite its high valuation, supported by strong financial performance and innovation-driven growth [1][2][3]. Financial Performance - Garmin reported a significant increase in operating income, rising to $1.6 billion from$1.1 billion, resulting in an operating profit margin of 25%, up from 21% in 2023 [2]. - Revenue grew by 20%, with the fitness division experiencing a notable 32% increase, while the aviation unit saw a modest 4% growth [2]. Innovation and Product Mix - The company's growth is attributed to innovation rather than price increases, indicating potential for sustained growth [3]. - Garmin's diverse product offerings include fitness trackers, smartwatches, and navigation platforms for aviation and boating, which supports continued sales momentum [3]. Cash Flow and Dividends - Garmin generated over $1 billion in free cash flow for the second consecutive year and entered 2025 with$3.7 billion in cash and securities [4]. - The quarterly dividend increased to $0.90 per share from$0.75, with ample cash reserves to support further dividend increases and stock buybacks [5]. Valuation Comparison - Garmin's stock is valued at 31 times the past year's earnings and 7 times sales, near record highs, but still more attractive compared to Apple's 39 times revenue and 10 times sales [6][7]. - Despite lacking Apple's scale and brand strength, Garmin is growing faster and has a competitive operating profit margin of 25% compared to Apple's 32% [7]. Market Outlook - Investors may consider waiting for a potential price dip given the recent market rally, but Garmin's innovative product releases suggest strong long-term returns [8].