Generac Holdings (GNRC) Rises But Trails Market: What Investors Should Know
The latest trading session saw Generac Holdings (GNRC) ending at $107.78, denoting a +0.34% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 0.43%. Elsewhere, the Dow saw an upswing of 0.19%, while the tech-heavy Nasdaq appreciated by 0.71%.
Shares of the generator maker witnessed a loss of 5.91% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 1.56% and the S&P 500's loss of 2.1%.
The investment community will be closely monitoring the performance of Generac Holdings in its forthcoming earnings report. The company is expected to report EPS of $1.51, down 13.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.04 billion, down 4.61% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.32 per share and a revenue of $4.05 billion, demonstrating changes of -36.13% and -11.39%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Generac Holdings. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 0.96% lower. At present, Generac Holdings boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Generac Holdings is holding a Forward P/E ratio of 20.18. Its industry sports an average Forward P/E of 14.94, so one might conclude that Generac Holdings is trading at a premium comparatively.
We can additionally observe that GNRC currently boasts a PEG ratio of 2.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. GNRC's industry had an average PEG ratio of 2.02 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 108, which puts it in the top 43% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Generac Holdings Inc. (GNRC) : Free Stock Analysis Report
