Why Garmin Stock Soared in July and Is at an All-Time High
2026-08-10 20:01
•Howard Smith •The Motley Fool
•• •• Axe Cap view
Garmin Soars on Wearables Boom—What It Means for South Africa
Garmin’s strong Q2 and robust cash position push shares to new highs, signaling potential interest for local investors via the USD/ZAR lens.
Garmin's 23.7% jump in July, driving a 53% year-to-date gain, isn’t just hype. The company’s growth in fitness wearables—up 25% year-on-year—is notable because it highlights demand for specialized tech, even as giants like Apple hover nearby. A forward price-to-earnings ratio near 31 feels high until you factor in Garmin’s $4.4 billion cash pile and zero debt, effectively lowering valuation to below 29, which looks fair for sustained growth. For South African investors, Garmin isn’t listed here, but the USD/ZAR exchange rate offers a useful touchpoint. A stronger dollar could stifle offshore buying, while a weakening rand makes those USD assets more attractive locally. If the rand stabilizes or weakens further, tech companies like Garmin could garner more attention as part of diversified offshore holdings. But beware—if the fitness craze cools or supply chain issues resurface, Garmin’s momentum might falter. this is just our opinion and not financial advice
Look to buy USD exposure selectively, using the rand’s movement as a gauge, but avoid direct Garmin positions given no local listing. Consider indirect exposure through SA tech counters like Naspers only if the rand weakens further.
- USD/ZAR
- Naspers
- Rand appreciation reducing offshore returns
- A sudden slowdown in wearable technology demand
6/10
Garmin stock surged 53% year-to-date and 23.7% in July following strong Q2 earnings with record revenue growth of 11% YoY and raised full-year guidance. The fitness segment led growth at 25% YoY, driven by advanced wearables. Despite a forward P/E of 31, the company's $4.4 billion cash position with zero debt effectively lowers valuation to under 29, suggesting shares remain reasonably valued for long-term investors.
Our take is based on reporting first published by The Motley Fool.