Stocks we love

•  See which stocks we loved last year

Yes, the stock has slipped recently due to competition from rival GPS makers and fears that an economic slowdown will crimp sales. These are valid concerns but one analyst thinks the sell-off is overdone.

"While we can't ignore the possibility that a U.S. economic slowdown could affect Garmin, we believe any impact is likely to be more modest than the current share price suggests," wrote Needham analyst Richard Valera in a research note.

Also, Garmin announced late last month it will enter the smartphone market with its nüvifone. The device will feature GPS, of course, as well as mobile Web-browsing capabilities.

Though some questions remain about which carrier will support the gadget and how much it will cost, the nüvifone has strong potential, according to Deutsche Bank analyst Jonathan Goldberg. "All in all, we believe Garmin has released an intriguing teaser," he said.

NEXT: Laboratory Corp of America