Generac Holdings (GNRC) Laps the Stock Market: Here's Why
In the latest market close, Generac Holdings (GNRC) reached $115.89, with a +1.22% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.88%. Meanwhile, the Dow gained 0.54%, and the Nasdaq, a tech-heavy index, added 1.35%.
Coming into today, shares of the generator maker had lost 9.92% in the past month. In that same time, the Computer and Technology sector gained 0.72%, while the S&P 500 gained 0.64%.
The investment community will be paying close attention to the earnings performance of Generac Holdings in its upcoming release. On that day, Generac Holdings is projected to report earnings of $2.10 per share, which would represent year-over-year growth of 17.98%. Meanwhile, our latest consensus estimate is calling for revenue of $1.1 billion, up 4.56% from the prior-year quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Generac Holdings. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Right now, Generac Holdings possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Generac Holdings is presently trading at a Forward P/E ratio of 15.57. This denotes a premium relative to the industry's average Forward P/E of 13.28.
Also, we should mention that GNRC has a PEG ratio of 1.56. 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 the market closed yesterday, the Electronics - Power Generation industry was having an average PEG ratio of 4.78.
The Electronics - Power Generation industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Generac Holdings Inc. (GNRC) : Free Stock Analysis Report
