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Generac Holdings (GNRC) Dips More Than Broader Markets: What You Should Know

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Generac Holdings (GNRC - Free Report) closed the most recent trading day at $114.39, moving -1.43% from the previous trading session. This move lagged the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq lost 3.22%.

Prior to today's trading, shares of the generator maker had gained 25.88% over the past month. This has outpaced the Computer and Technology sector's gain of 11.67% and the S&P 500's gain of 4.64% in that time.

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 $1.72 per share. This would mark a year-over-year decline of 31.47%. Our most recent consensus estimate is calling for quarterly revenue of $1.07 billion, up 0.28% from the year-ago period.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 1.27% lower. Generac Holdings is holding a Zacks Rank of #5 (Strong Sell) right now.

Valuation is also important, so investors should note that Generac Holdings has a Forward P/E ratio of 15.78 right now. Its industry sports an average Forward P/E of 15.78, so we one might conclude that Generac Holdings is trading at a no noticeable deviation comparatively.

It is also worth noting that GNRC currently has a PEG ratio of 1.58. 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. The Electronics - Power Generation was holding an average PEG ratio of 1.36 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 103, putting it in the top 41% 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.

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


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