Generac Holdings (GNRC) Gains As Market Dips: What You Should Know
In the latest trading session, Generac Holdings (GNRC) closed at $230.56, marking a +0.12% move from the previous day. This change outpaced the S&P 500's 0.08% loss on the day. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq lost 0.04%.
Coming into today, shares of the generator maker had lost 17.12% in the past month. In that same time, the Computer and Technology sector lost 5.66%, while the S&P 500 lost 6.03%.
Investors will be hoping for strength from Generac Holdings as it approaches its next earnings release. In that report, analysts expect Generac Holdings to post earnings of $2.66 per share. This would mark year-over-year growth of 11.3%. Our most recent consensus estimate is calling for quarterly revenue of $1.26 billion, up 37.47% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.74 per share and revenue of $5.16 billion, which would represent changes of +21.91% and +37.99%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Generac Holdings is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Generac Holdings currently has a Forward P/E ratio of 19.61. For comparison, its industry has an average Forward P/E of 19.61, which means Generac Holdings is trading at a no noticeable deviation to the group.
Meanwhile, GNRC's PEG ratio is currently 1.96. 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 currently had an average PEG ratio of 1.96 as of yesterday's close.
The Electronics - Power Generation industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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