Blue-Chip Stocks With High-Risk Earnings Reports: Garmin (GRMN)
Scheduled to Report: Wednesday, Aug. 2 (AM)
Earnings Estimate: 81 cents per share
Revenue Estimate: $806.53 million
Garmin Ltd. (NASDAQ:GRMN) has been reinventing itself for the past two years, fighting off others in the GPS space as it expands into smartwatches and other devices.
You wouldn’t know it if you’re a shareholder — GRMN is essentially trading where it was back in 2013, and more recently it has been rangebound for about six months.
The good news? Expectations for Garmin’s report are low, making a beat more feasible. The bad news? People examining the stock don’t like what they see. Analyst recommendations are pessimistic, and short interest is sitting at about 14% of the float — fairly high.
A positive report could cause the bearish crowd to turn tail and force the shorts to start buying back stock. (In fact, that’s one of our favorite contrarian plays.) However, the risk is high here, and a poor report will confirm what the bears suspect, sending GRMN below its range and giving way to much lower prices.