Strong Premium Wearables Demand Should Drive Good Growth for Narrow-Moat Garmin

Garmin specializes in GPS-enabled hardware and software for recreational and defense needs. We like the firm’s ability to bring this core technology proposition to several distinct end markets and generate attractive growth. We also appreciate the firm’s vertically integrated approach and focus on premium products, which generate good operating margins. We expect Garmin to maintain its strong foothold across its served markets and defend its market share even from well-capitalized competitors like Apple and Samsung.