As Garmin's Tracking Paths, Investors Should Track Top-Pick Garmin; Shares Attractive After Sell-Off

Narrow-moat Garmin is one of our top picks in the technology sector, as our fair value estimate of $143 per share offers nice upside for long-term investors. Pandemic-induced habits such as more time spent outdoors or increased importance on fitness have served Garmin well, and we think will have long-lasting benefits to Garmin's business. But even more important than these market-related tailwinds is the fact that we consider Garmin to benefit from significant switching costs and intangible assets in three out of five segments--which contribute to the majority of its operating profits. We think the mission-critical nature of its aviation, marine, and outdoor offerings make switching from Garmin products difficult in isolation--but paired with the Garmin name and the immense trust it carries with its clientele makes such switching nearly impossible. This shows in Garmin's financial results, leaving Garmin an attractive chart to course for investors, in our view.