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Why Generac Holdings (GNRC) Outpaced the Stock Market Today

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Generac Holdings (GNRC - Free Report) closed at $127.14 in the latest trading session, marking a +1.07% move from the prior day. This move outpaced the S&P 500's daily gain of 0.06%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 0.24%.

Shares of the generator maker witnessed a gain of 1.17% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 12.39% and the S&P 500's gain of 6.45%.

The investment community will be closely monitoring the performance of Generac Holdings in its forthcoming earnings report. The company is scheduled to release its earnings on February 14, 2024. The company is predicted to post an EPS of $2.09, indicating a 17.42% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.1 billion, indicating a 4.59% growth compared to the corresponding quarter of the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Generac Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Currently, Generac Holdings is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Generac Holdings is currently exchanging hands at a Forward P/E ratio of 17.12. This denotes a premium relative to the industry's average Forward P/E of 12.34.

We can also see that GNRC currently has a PEG ratio of 1.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Electronics - Power Generation industry was having an average PEG ratio of 4.64.

The Electronics - Power Generation industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 115, putting it in the top 46% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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