Garmin Ltd. (NYSE:GRMN) is included among the 13 Best Debt Free Dividend Stocks to Buy Now. Tigress Lifts Garmin (GRMN) Target, Cites Strength Across Wearables and Aviation On December 19, Tigress Financial raised its price target on Garmin Ltd. (NYSE:GRMN) to $310 from $305 and kept a Strong Buy rating. The firm points to wearables and outdoor devices as key growth drivers, with aviation and marine businesses adding steady, high-margin support. Tigress said its 12-month target implies a potential total ...

Core Viewpoint - Zepp Health has seen a significant stock price increase of nearly 1,100% over six months, although it remains down approximately 37% from its IPO price in February 2018 and over 60% from its peak [1][2]. Group 1: Financial Performance - Zepp Health reported Q2 revenue of $59.4 million, marking a year-over-year increase of 46.2%, surpassing the management's forecast of $50 million to $55 million [5]. - For Q3, Zepp projected revenue between $72 million and $76 million, ultimately reporting $75.8 million, which represents a 78.5% year-over-year increase [7]. - The company has a gross margin of 37.92% and is currently valued at 1.2 times forward earnings [6][11]. Group 2: Market Sentiment and Future Outlook - The market has responded positively to Zepp's recent sales growth, particularly in its Amazfit wearables [3][5]. - Despite ongoing losses, the stock's recent pullback of 54% from an intraday high suggests it may be an opportune time for investors to consider buying [11]. - The company is making progress towards achieving profitability, which could further enhance investor confidence [8].

Core Insights - Garmin's 2025 Garmin Connect Data Report reveals significant health and fitness trends among users globally, highlighting an 8% increase in recorded activities compared to 2024 [1] Activity Trends - Racket sports saw a 67% increase in participation - High-Intensity Interval Training (HIIT) increased by 45% - Pilates participation rose by 46% - Strength training grew by 29% - Indoor running and diving both increased by 16% - Hiking saw a 12% increase [1] Health and Fitness Insights - Women recorded lower average stress scores than men, with Indonesian users having the highest stress scores and Dutch users the lowest - Users experienced nearly a 1% improvement in sleep quality, with an average sleep score of 71 - Younger users (ages 18-29) had higher Body Battery™ energy levels, averaging 75, while users aged 40-49 averaged 70 and those over 70 averaged 64 - Portugal recorded the highest average Body Battery levels, while Japan had the lowest - On average, users increased their daily step count, with users in Hong Kong averaging over 10,000 steps per day [1]

Core Insights - Alibaba has launched its new Quark artificial intelligence glasses in China, marking its entry into the AI wearables market, which is currently dominated by Meta globally [1] Company Developments - The introduction of Quark glasses signifies Alibaba's strategic move to diversify its product offerings and compete in the growing AI wearables sector [1] Market Context - The AI wearables market is increasingly competitive, with major players like Meta leading the space, indicating a challenging environment for new entrants like Alibaba [1]

Core Insights - RiverPark Advisors reported strong performance in U.S. equity markets during Q3 2025, with the S&P 500 Total Return Index increasing by 8.12% and the Russell 1000 Growth Index rising by 10.51% [1] - The RiverPark Large Growth Fund achieved a return of 4.73% in the same quarter, with market leadership concentrated among a few mega-cap tech and consumer companies driven by AI innovation [1] - The sectors of Information Technology, Consumer Discretionary, and Communication Services outperformed, while Energy and Utilities lagged behind [1] Company Focus: Apple Inc. (NASDAQ:AAPL) - Apple Inc. reported a one-month return of 3.48% and a 52-week gain of 16.79%, closing at $267.44 per share with a market capitalization of $3.969 trillion on November 18, 2025 [2] - The company experienced a strong quarter, with total revenue of approximately $94 billion, reflecting a 10% year-over-year growth, driven by a 15% increase in iPhone sales and record Services revenue of $27 billion [3] - Apple Inc. ranked 8th among the 30 Most Popular Stocks Among Hedge Funds, with 156 hedge fund portfolios holding its shares at the end of Q2 2025, down from 159 in the previous quarter [4] - The September quarter revenue for Apple Inc. was reported at $102.5 billion, marking an 8% year-over-year increase [4]

Core Insights - Meta is intensifying its robotics initiatives by hiring AI talent and appointing Li-Chen Miller as the first product manager of its new Robotics group within Reality Labs [1][2][4] Group 1: Leadership and Team Structure - Li-Chen Miller, previously leading Meta's smart glasses portfolio, has transitioned to head the Robotics team, indicating a strategic shift towards robotics [1][2][5] - The Robotics team has attracted notable engineers, including MIT roboticist Sangbae Kim and software architect Jinsong Yu, enhancing its expertise [6] Group 2: Job Openings and Recruitment - Meta currently has around 40 job openings related to robotics, including roles for a director of robotics product operations and AI research scientists [3] Group 3: Strategic Direction and Goals - The robotics initiative is part of Meta's broader AI ambitions, with the new organization situated within Reality Labs, which is focused on augmented and virtual reality hardware [7] - Meta is developing an internal humanoid robot referred to as "Metabot," with collaboration from the newly established Superintelligence Lab [8]

Core Insights - Garmin Ltd. reported third-quarter 2025 pro forma earnings of $1.99 per share, exceeding the Zacks Consensus Estimate by 0.5%, but the earnings remained flat year-over-year [1] - Net sales reached $1.77 billion, missing the Zacks Consensus Estimate by 1.1%, yet showing a 12% increase from the same quarter last year, driven by strong performance in the Fitness, Aviation, and Marine segments [1] Segment Performance - **Outdoor Segment (28.1% of Net Sales)**: Generated sales of $497.6 million, down 5% year-over-year due to weak consumer auto and adventure watch sales, with an operating income of $170 million and a 34% operating margin [2] - **Fitness Segment (33.9%)**: Recorded sales of $601 million, reflecting a 30% year-over-year increase, driven by strong demand for advanced wearables, with an operating income of $194 million and a 32% operating margin [3] - **Aviation Segment (13.6%)**: Achieved sales of $240.4 million, up 18% year-over-year, supported by strength in OEM and aftermarket products, with an operating income of $61 million and a 25% margin [4] - **Marine Segment (15.1%)**: Posted sales of $267 million, up 20% year-over-year, with an operating income of $49 million and a 19% margin [4] - **Auto OEM Segment (9.3%)**: Sales reached $164.8 million, down 2% year-over-year, with an operating loss of $17 million and a gross margin of 15% [5] Financial Results - Gross profit increased by 10% year-over-year to $1.05 billion, while gross margin contracted by 90 basis points to 59.1% [6] - Operating expenses rose by 15% year-over-year to $590 million, with operating income increasing by 4% to $456.8 million, and operating margin contracting by 180 basis points to 25.8% [6] Balance Sheet & Cash Flow - As of September 27, 2025, Garmin held $2.54 billion in cash and marketable securities, a slight decrease from $2.59 billion in the previous quarter [7] - Generated operating cash flow of $486 million and free cash flow of $425 million in the third quarter, with total operating and free cash flows for the first three quarters of 2025 at $1.08 billion and $933.3 million, respectively [7] Guidance Update - Garmin raised its 2025 pro forma EPS guidance to $8.15 from $8.0, reflecting confidence in continued margin strength, while projecting revenues for 2025 at $7.1 billion, unchanged from previous guidance [9][10] - The company anticipates a gross margin of 58.5% and an operating margin of 25.2% for 2025, an increase from the previous guidance of 24.8% [11]

Financial Data and Key Metrics Changes - Consolidated revenue increased 12% to nearly $1.8 billion, setting a new third-quarter record, despite a strong comparison from last year when revenue increased over 24% [4] - Gross margin was 59.1%, a 90 basis point decrease from the prior quarter, while operating margin was 25.8%, a 180 basis point decrease compared to the prior quarter [15] - Operating income reached $457 million, up 4% year-over-year, with pro forma EPS of $1.99 and GAAP EPS of $2.08 [4][15] Business Segment Data and Key Metrics Changes - **Fitness Segment**: Revenue increased 30% to $601 million, with gross and operating margins at 60% and 32% respectively, resulting in operating income of $194 million [6][7] - **Outdoor Segment**: Revenue decreased 5% to $498 million, with gross and operating margins at 66% and 34% respectively, resulting in operating income of $170 million [8][10] - **Aviation Segment**: Revenue increased 18% to $240 million, with gross and operating margins at 75% and 25% respectively, resulting in operating income of $61 million [11] - **Marine Segment**: Revenue increased 20% to $267 million, with gross and operating margins at 56% and 19% respectively, resulting in operating income of $49 million [12][14] - **Auto OEM Segment**: Revenue decreased 2% to $165 million, with a gross margin of 15% leading to an operating loss of $17 million [14] Market Data and Key Metrics Changes - By geography, double-digit growth was achieved in all three regions: 14% in APAC, 13% in EMEA, and 10% in Americas [16] - Inventory increased year-over-year to approximately $1.9 billion, reflecting a strategy to increase inventory of high-demand product lines [17] Company Strategy and Development Direction - The company is focused on maintaining a diversified business model and anticipates delivering another record year of double-digit growth in revenue, operating income, and EPS [4][6] - New product launches, such as the Edge 550 and Edge 850 cycling computers, and the Bounce 2 smartwatch for kids, are part of the strategy to drive growth in the fitness segment [7][8] - The company is also expanding its presence in the equine wellness market with the Blaze Equine Wellness System [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue of $7.1 billion and raised full-year EPS guidance to $8.15, reflecting strong year-to-date performance [5][18] - The outdoor segment's revenue outlook was revised down due to the late launch of the fnix 8 Pro and high expectations following the previous year's successful product launches [20][21] - Management noted that the overall market for wearables remains strong, with opportunities for growth in both fitness and outdoor segments [29] Other Important Information - The effective tax rate increased to 21.2% due to new U.S. tax legislation affecting R&D cost capitalization [17][18] - Free cash flow for the third quarter was $425 million, with expectations of approximately $1.3 billion for the full year [17] Q&A Session Summary Question: What are the main drivers behind the downward revision to outdoor guidance? - Management indicated that the fnix 8 Pro's late launch and high expectations from previous product releases contributed to the revision [20][21] Question: Can you elaborate on the drivers behind the implied gross margin guide for Q4? - Management noted that higher product costs, tariffs, and warranty accruals impacted gross margins, while Q4 is typically more promotional [22][23][24] Question: How does the company view the cycle for fitness and outdoor segments? - Management sees ongoing opportunities for growth rather than cyclical ups and downs, emphasizing market share gains and product innovation [28][29] Question: What is the outlook for the auto OEM segment as legacy programs wind down? - Management expects revenue pressure in 2026 due to the end of life for certain programs, but anticipates new programs to come online in the latter half of 2026 [41] Question: What is driving the growth in the aviation segment? - Both OEM and aftermarket categories are performing strongly, with a long backlog in OEM and resilient consumer behavior in the aftermarket [42] Question: How is the company managing through the tariff situation? - Management stated that the tariff situation is stable, and they have made necessary short-term adjustments while focusing on long-term optimizations [70]

Core Insights - Zepp Health Corporation has experienced a significant turnaround, with its stock price increasing over 1,900% in 2025, primarily driven by the growth of its Amazfit brand [1][5] - The company's strategic shift from reliance on Xiaomi to focusing on its own Amazfit line has been pivotal in this recovery [3][4] Company Performance - Zepp Health reported revenue of $59 million in Q2 2025, marking a 46% year-over-year increase and its first revenue growth since 2021, with all growth attributed to Amazfit products [5] - The company has been building a roster of elite athletes as brand ambassadors, including notable figures like Derrick Henry [5] Strategic Shift - Originally known as Huami, the company transitioned to Zepp Health in 2021, moving away from the Xiaomi brand and focusing on developing its Amazfit line [3][4] - This strategic rebranding was initially risky, as the company faced consistent declines in share price and revenue prior to the recent growth [4]

Core Viewpoint - Garmin Ltd. is experiencing potential for accelerating revenue growth, particularly in its fitness and smart wearables segments, leading to a revised price target and a strong buy recommendation from Tigress Financial [1][2][5]. Company Performance - Garmin's current stock price is $244.12, showing a slight decrease of 0.57% or $1.41, with a trading range today between $243.25 and $245.56 [3]. - Over the past year, Garmin's stock has fluctuated significantly, reaching a high of $246.50 and a low of $160.94, indicating notable volatility [3][5]. - The company has a market capitalization of approximately $46.99 billion, reflecting its substantial presence in the market [4][5]. Analyst Insights - Tigress Financial has reaffirmed a "Strong Buy" rating for Garmin, raising the price target from $285 to $305, suggesting a potential total return of over 25% from current levels [2][5]. - The increase in price target is attributed to the anticipated acceleration in revenue growth driven by Garmin's performance in the fitness and smart wearables segments [2][5].