Generac Holdings (GNRC) Gains But Lags Market: What You Should Know
Generac Holdings (GNRC) closed at $348.20 in the latest trading session, marking a +0.6% move from the prior day. This change lagged the S&P 500's 1.78% gain on the day. At the same time, the Dow added 1.61%, and the tech-heavy Nasdaq gained 0.95%.
Prior to today's trading, shares of the generator maker had lost 21.34% over the past month. This has lagged the Computer and Technology sector's loss of 6.2% and the S&P 500's loss of 2.63% in that time.
Generac Holdings will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.45, up 15.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.02 billion, up 34.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.60 per share and revenue of $3.69 billion, which would represent changes of +48.38% and +48.56%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Generac Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.71% lower. Generac Holdings is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Generac Holdings has a Forward P/E ratio of 36.05 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 36.05.
Meanwhile, GNRC's PEG ratio is currently 2.7. 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 was holding an average PEG ratio of 4.19 at yesterday's closing price.
The Electronics - Power Generation industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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