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Generac Holdings (GNRC) Outpaces Stock Market Gains: What You Should Know

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Generac Holdings (GNRC - Free Report) closed the most recent trading day at $301, moving +1.26% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.

Heading into today, shares of the generator maker had lost 7.07% over the past month, lagging the Computer and Technology sector's gain of 2.36% and the S&P 500's gain of 3.75% in that time.

Generac Holdings will be looking to display strength as it nears its next earnings release. On that day, Generac Holdings is projected to report earnings of $2.36 per share, which would represent a year-over-year decline of 0.84%. Our most recent consensus estimate is calling for quarterly revenue of $1.08 billion, up 33.8% from the year-ago period.

GNRC's full-year Zacks Consensus Estimates are calling for earnings of $11.55 per share and revenue of $5 billion. These results would represent year-over-year changes of +19.94% and +33.77%, respectively.

It is also important to note the recent changes to analyst estimates for Generac Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.29% lower. Generac Holdings is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Generac Holdings's current valuation metrics, including its Forward P/E ratio of 25.75. This valuation marks a premium compared to its industry's average Forward P/E of 21.47.

We can also see that GNRC currently has a PEG ratio of 1.93. 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 4.14 as of yesterday's close.

The Electronics - Power Generation industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 218, putting it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow GNRC in the coming trading sessions, be sure to utilize Zacks.com.


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