Garmin Fades From Glory

While Rauckman believes the increase in volume could make up for the decline in margin, it hasn't alleviated analysts' concerns. "In our conversations with Garmin, we sense the first notes of caution," wrote Goldberg.

However, some money managers are holding the bullish line.

The company is likely to report a strong fourth quarter and despite fears of pricing pressure, at its current levels, the selloff may be overdone, says Joe Biondo Jr., chief investment officer for Biondo Investment Advisors, which holds Garmin in its portfolio.

"Clearly any pricing pressure will affect the company's valuation," says Biondo, "but at this point if margins hold up and customer adoption trends hold up for the next year or two, then the stock is pretty cheap."