Generac Holdings (GNRC) Surpasses Market Returns: Some Facts Worth Knowing
In the latest market close, Generac Holdings (GNRC) reached $123.50, with a +1.06% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.02%.
Shares of the generator maker witnessed a loss of 5.31% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.68% and the S&P 500's gain of 3.52%.
The investment community will be paying close attention to the earnings performance of Generac Holdings in its upcoming release. The company's earnings per share (EPS) are projected to be $2.10, reflecting a 17.98% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.1 billion, showing a 4.55% escalation compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for Generac Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.47% downward. Generac Holdings is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Generac Holdings is currently trading at a Forward P/E ratio of 16.62. This indicates a premium in contrast to its industry's Forward P/E of 14.57.
We can additionally observe that GNRC currently boasts a PEG ratio of 1.66. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Electronics - Power Generation industry stood at 1.66 at the close of the market yesterday.
The Electronics - Power Generation industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% 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
