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

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In the latest trading session, Generac Holdings (GNRC - Free Report) closed at $229.89, marking a +1.94% move from the previous day. This change outpaced the S&P 500's 1.83% gain on the day. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.09%.

Coming into today, shares of the generator maker had lost 7.65% in the past month. In that same time, the Computer and Technology sector lost 9.85%, while the S&P 500 lost 5.51%.

Wall Street will be looking for positivity from Generac Holdings as it approaches its next earnings report date. In that report, analysts expect Generac Holdings to post earnings of $3.21 per share. This would mark year-over-year growth of 36.6%. Our most recent consensus estimate is calling for quarterly revenue of $1.34 billion, up 41.86% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.89 per share and revenue of $5.17 billion. These totals would mark changes of +23.47% and +38.39%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Generac Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate has moved 0.26% higher. Generac Holdings is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Generac Holdings currently has a Forward P/E ratio of 18.96. This represents a no noticeable deviation compared to its industry's average Forward P/E of 18.96.

It is also worth noting that GNRC currently has a PEG ratio of 1.9. 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 1.9 based on yesterday's closing prices.

The Electronics - Power Generation industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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