Generac Holdings (GNRC) Stock Declines While Market Improves: Some Information for Investors
In the latest trading session, Generac Holdings (GNRC) closed at $86.76, marking a -1.74% move from the previous day. This change lagged the S&P 500's 0.73% gain on the day. Meanwhile, the Dow experienced a rise of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.93%.
The generator maker's stock has dropped by 17.79% in the past month, falling short of the Computer and Technology sector's loss of 0.22% and the S&P 500's loss of 2.29%.
The investment community will be paying close attention to the earnings performance of Generac Holdings in its upcoming release. The company is slated to reveal its earnings on November 1, 2023. The company is predicted to post an EPS of $1.51, indicating a 13.71% decline compared to the equivalent quarter last year. 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.
It's also important for investors to be aware of any recent modifications to analyst estimates for Generac Holdings. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.67% lower within the past month. 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 16.59. This denotes a premium relative to the industry's average Forward P/E of 13.23.
Also, we should mention that GNRC has a PEG ratio of 1.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics - Power Generation industry currently had an average PEG ratio of 1.66 as of yesterday's close.
The Electronics - Power Generation industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 51, positioning it in the top 21% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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
