Here's Why Generac Holdings (GNRC) Fell More Than Broader Market
The most recent trading session ended with Generac Holdings (GNRC) standing at $99.97, reflecting a -0.29% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.25%.
The the stock of generator maker has fallen by 8.85% in the past month, lagging the Computer and Technology sector's loss of 0.05% and the S&P 500's loss of 1.6%.
Investors will be eagerly watching for the performance of Generac Holdings in its upcoming earnings disclosure. In that report, analysts expect Generac Holdings to post earnings of $1.51 per share. This would mark a year-over-year decline of 13.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.04 billion, down 4.61% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.32 per share and revenue of $4.05 billion, indicating changes of -36.13% and -11.39%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Generac Holdings should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.96% lower. Generac Holdings currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Generac Holdings is holding a Forward P/E ratio of 18.83. This denotes a premium relative to the industry's average Forward P/E of 14.28.
Also, we should mention that GNRC has a PEG ratio of 1.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Electronics - Power Generation stocks are, on average, holding a PEG ratio of 1.88 based on yesterday's closing prices.
The Electronics - Power Generation industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 103, placing it within the top 41% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Generac Holdings Inc. (GNRC) : Free Stock Analysis Report
