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

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In the latest trading session, Generac Holdings (GNRC - Free Report) closed at $109.48, marking a -0.38% move from the previous day. This move lagged the S&P 500's daily gain of 2.37%. Elsewhere, the Dow gained 2.47%, while the tech-heavy Nasdaq lost 0.07%.

Coming into today, shares of the generator maker had lost 35.76% in the past month. In that same time, the Computer and Technology sector lost 5.85%, while the S&P 500 lost 4.82%.

Generac Holdings will be looking to display strength as it nears its next earnings release. In that report, analysts expect Generac Holdings to post earnings of $3.11 per share. This would mark year-over-year growth of 32.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.09 billion, up 15.7% from the year-ago period.

GNRC's full-year Zacks Consensus Estimates are calling for earnings of $11.66 per share and revenue of $5.09 billion. These results would represent year-over-year changes of +21.08% and +36.22%, respectively.

Investors should also note any recent changes to analyst estimates for Generac Holdings. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 2.05% lower within the past month. Generac Holdings is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Generac Holdings has a Forward P/E ratio of 9.43 right now. This represents a discount compared to its industry's average Forward P/E of 12.39.

Also, we should mention that GNRC has a PEG ratio of 0.94. 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. Electronics - Power Generation stocks are, on average, holding a PEG ratio of 0.94 based on yesterday's closing prices.

The Electronics - Power Generation industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% 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.

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


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