Why Garmin Stock Soared in July and Is at an All-Time High

Garmin stock climbed 23.7% in July and has surged 53% year-to-date, reaching an all-time high following second-quarter earnings that delivered record revenue growth of 11% year-over-year. The company raised its full-year guidance on the strength of the results.

The fitness segment drove the quarter, posting 25% year-over-year growth fueled by demand for advanced wearables. Garmin's balance sheet shows $4.4 billion in cash with zero debt, a position that effectively reduces its forward price-to-earnings ratio from 31 to under 29 when adjusting for the net cash position.

The July rally extended a run that has pushed shares well above prior highs. Despite the premium valuation, the combination of double-digit revenue growth, segment strength in fitness wearables, and a fortress balance sheet has kept buyers engaged through the summer.