The dollar’s slide to a four-year low lent fresh momentum to the precious metals complex on Wednesday, pushing prices further , even as geopolitical tensions continued to support it. Reactions to the latest rally were mixed with some analysts forecasting further surge in the precious metals, but some cautioned saying they are in the over-bought category. At 1915 hours IST, gold zoomed to $5,295 an ounce. Gold April futures soared to $5,344 an ounce before easing. In India, the yellow precious ended at a fre ...

Core Insights - Garmin has regained attention due to a significant Q2 earnings beat and an elevated full-year guidance, despite a recent stock decline of approximately 5% [2][4] - The stock's decline is attributed to profit-taking and technical fatigue after a nearly 30% surge since April, moving into overbought territory [5][6] - Analysts express caution regarding potential deceleration in the second half of the year, despite the company's optimistic outlook [6] Financial Performance - Garmin reported Q2 FY2025 revenue of $1.81 billion, a 20% year-over-year increase, with adjusted EPS of $2.17, surpassing Wall Street predictions [4] - The company upgraded its full-year forecast to $7.1 billion in revenue and $8.00 in EPS [4] - Over the past three years, Garmin has achieved an 8.7% compound annual growth rate in revenue, with a recent 12-month revenue growth of 18.1% to $6.5 billion [8] Valuation Metrics - Garmin's P/E ratio is 27.3, compared to 22.8 for the S&P 500, indicating a premium valuation [7] - The P/S ratio stands at 6.6 versus the S&P's 3.1, and the price-to-free cash flow ratio is 35.0 compared to 20.3 [7] - The current stock price reflects much of the positive news already, suggesting a stretched valuation [7] Financial Stability - Garmin's operating margin is 25.2% and net margin is 22.8%, significantly exceeding S&P 500 averages [8] - The company has a cash-to-assets ratio of 27.3% and a low debt-to-equity ratio of 0.3%, indicating strong financial stability [8] Historical Performance - Garmin's stock has historically faced challenges during market downturns, with a 56% decline post-2022 inflation shock, exceeding the S&P 500's 25.4% drop [9] - During the COVID-19 crash in 2020, Garmin shares fell 38.6%, again surpassing the broader market's decline [9] - The stock experienced an 87.7% retreat during the 2008 financial crisis, significantly worse than the S&P's 56.8% decline [9] Long-Term Outlook - Garmin is recognized for its growth, profitability, and financial health, but the short-term outlook appears less attractive following a significant surge [10] - The recent stock decline is viewed as a reassessment of inflated valuations rather than a reflection of business weaknesses [10] - Garmin remains a high-quality name for long-term investment despite short-term volatility [10]