Why the Market Dipped But Generac Holdings (GNRC) Gained Today
In the latest market close, Generac Holdings (GNRC) reached $114.69, with a +0.04% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.07% for the day. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.36%.
The generator maker's stock has dropped by 12.44% in the past month, falling short of the Computer and Technology sector's gain of 5.93% and the S&P 500's gain of 3.05%.
Analysts and investors alike will be keeping a close eye on the performance of Generac Holdings in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.10, marking a 17.98% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.1 billion, reflecting a 4.56% rise from the equivalent quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Generac Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, there's been a 0.1% fall in the Zacks Consensus EPS estimate. Generac Holdings is currently a Zacks Rank #3 (Hold).
In the context of valuation, Generac Holdings is at present trading with a Forward P/E ratio of 15.61. For comparison, its industry has an average Forward P/E of 13.48, which means Generac Holdings is trading at a premium to the group.
We can additionally observe that GNRC currently boasts a PEG ratio of 1.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GNRC's industry had an average PEG ratio of 4.81 as of yesterday's close.
The Electronics - Power Generation industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 111, finds itself in the top 45% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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
