Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth

25. Garmin Ltd. (NYSE:GRMN)

Growth Investment Ratio: 85%

Number of Hedge Fund Holders: 31

Garmin Ltd. (NYSE:GRMN) is a fitness and recreation technology products provider. The firm designs and sells a variety of gadgets such as smartwatches, golf products, and software. It also has a presence in the aviation and maritime industries and uses it to establish a brand reputation among customers. As of H1 2024, 55% of Garmin Ltd. (NYSE:GRMN)’s revenue came through its Fitness and Outdoor businesses. These businesses are quite cyclical and depend on a robust consumer environment to drive spending. The exposure to cyclicality was evident in Garmin Ltd. (NYSE:GRMN)’s June quarter results when Outdoor revenue dropped 2% annually to sit at $439 million. Yet, even though it is exposed to consumer spending, the firm’s strong brand image and high product quality mean that when spending does recover, it is well positioned to capitalize from it. These strengths have enabled Garmin Ltd. (NYSE:GRMN) to withstand the sluggish US consumer environment by beating analyst Fitness revenue estimates of $396 million for Q3 by posting $463.9 million. The company has also launched new products for the upcoming holiday season, and its shares should respond to consumer demand.

Upslope Management mentioned Garmin Ltd. (NYSE:GRMN) in its Q3 2024 investor letter. Here is what the fund said:

“The Fund also significantly reduced its positions in Garmin Ltd. (NYSE:GRMN) (GRMN, technology business known for smartwatches and navigation systems, among other products) and Kongsberg (KOG-OSL, Norway-based aero/defense and maritime business), due to full valuations. Both are very well-managed leaders in their respective niches. However, a significant amount of good news is clearly baked into shares today.”