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Generac Holdings (GNRC) Gains But Lags Market: What You Should Know

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Generac Holdings (GNRC - Free Report) closed at $249.88 in the latest trading session, marking a +0.27% move from the prior day. The stock lagged the S&P 500's daily gain of 0.99%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.31%.

Heading into today, shares of the generator maker had gained 17.23% over the past month, outpacing the Computer and Technology sector's loss of 11.18% and the S&P 500's gain of 7.91% in that time.

Wall Street will be looking for positivity from Generac Holdings as it approaches its next earnings report date. This is expected to be August 3, 2022. The company is expected to report EPS of $2.65, up 10.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.26 billion, up 37.13% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.75 per share and revenue of $5.16 billion, which would represent changes of +22.01% and +37.98%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Generac Holdings. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Generac Holdings is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that Generac Holdings has a Forward P/E ratio of 21.22 right now. Its industry sports an average Forward P/E of 21.22, so we one might conclude that Generac Holdings is trading at a no noticeable deviation comparatively.

Meanwhile, GNRC's PEG ratio is currently 2.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Power Generation was holding an average PEG ratio of 2.12 at yesterday's closing price.

The Electronics - Power Generation industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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