Bull case
Garmin is compelling because its products serve as essential performance tools for serious users in fitness, aviation, marine, outdoor, and automotive markets, which supports resilient demand, premium pricing, and lower sensitivity to discretionary spending. Its vertically integrated design, engineering, and manufacturing model improves quality control, supply-chain flexibility, and speed to market, helping sustain gross margin strength and navigate component shortages while its innovation pipeline broadens the ecosystem through subscriptions, coaching, connectivity, and health data. Recent results underscore this strength, with Q2 revenue up 11% to a record $2.02 billion, gross margin expanding to 62.4%, operating income rising 30% to $616 million, and pro forma EPS increasing 29% to $2.81, alongside rising Return on Capital and Economic Profit.