Generac Holdings (GNRC) Falls More Steeply Than Broader Market: What Investors Need to Know
Generac Holdings (GNRC) ended the recent trading session at $122.21, demonstrating a -1.71% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.07%.
Prior to today's trading, shares of the generator maker had lost 0.69% over the past month. This has lagged the Computer and Technology sector's gain of 2.5% and the S&P 500's gain of 3.98% in that time.
Investors will be eagerly watching for the performance of Generac Holdings in its upcoming earnings disclosure. The company is expected to report EPS of $2.10, up 17.98% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.1 billion, up 4.55% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for Generac Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.52% downward. Generac Holdings is currently a Zacks Rank #3 (Hold).
Looking at valuation, Generac Holdings is presently trading at a Forward P/E ratio of 16.92. This indicates a premium in contrast to its industry's Forward P/E of 14.88.
Investors should also note that GNRC has a PEG ratio of 1.69 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Power Generation industry had an average PEG ratio of 1.69 as trading concluded yesterday.
The Electronics - Power Generation industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Generac Holdings Inc. (GNRC) : Free Stock Analysis Report
