Back to top

Image: Bigstock

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

Read MoreHide Full Article

Generac Holdings (GNRC - Free Report) closed at $445.23 in the latest trading session, marking a -0.65% move from the prior day. This change lagged the S&P 500's 0.35% loss on the day.

Heading into today, shares of the generator maker had gained 26.21% over the past month, outpacing the Computer and Technology sector's gain of 4.23% and the S&P 500's gain of 3.36% in that time.

GNRC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.35, up 67.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $872.36 million, up 59.52% from the year-ago period.

GNRC's full-year Zacks Consensus Estimates are calling for earnings of $10.13 per share and revenue of $3.61 billion. These results would represent year-over-year changes of +56.57% and +45.16%, respectively.

Investors might also notice recent changes to analyst estimates for GNRC. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 0.34% higher. GNRC is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, GNRC currently has a Forward P/E ratio of 44.25. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 44.25.

Meanwhile, GNRC's PEG ratio is currently 6.81. 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. The Electronics - Power Generation was holding an average PEG ratio of 5.88 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 126, putting it in the top 50% 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Generac Holdings Inc. (GNRC) - free report >>

Published in