Generac Holdings (GNRC) Exceeds Market Returns: Some Facts to Consider
Generac Holdings (GNRC) closed the latest trading day at $130.93, indicating a +0.49% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.04%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.03%.
The the stock of generator maker has risen by 12.71% in the past month, leading the Computer and Technology sector's gain of 4.9% and the S&P 500's gain of 5.28%.
The investment community will be closely monitoring the performance of Generac Holdings in its forthcoming earnings report. The company is forecasted to report an EPS of $2.10, showcasing a 17.98% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.1 billion, showing a 4.69% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.40 per share and a revenue of $4.05 billion, signifying shifts of -35.17% and -11.2%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Generac Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.58% upward. Right now, Generac Holdings possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Generac Holdings is at present trading with a Forward P/E ratio of 24.13. This expresses no noticeable deviation compared to the average Forward P/E of 24.13 of its industry.
It's also important to note that GNRC currently trades at a PEG ratio of 2.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Electronics - Power Generation industry held an average PEG ratio of 2.41.
The Electronics - Power Generation industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 227, this industry ranks in the bottom 10% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Generac Holdings Inc. (GNRC) : Free Stock Analysis Report
