Back to top

Image: Bigstock

Generac Holdings (GNRC) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

In the latest trading session, Generac Holdings (GNRC - Free Report) closed at $224.55, marking a +1.19% move from the previous day. This move lagged the S&P 500's daily gain of 3.06%. Meanwhile, the Dow gained 2.68%, and the Nasdaq, a tech-heavy index, added 0.05%.

Heading into today, shares of the generator maker had lost 8.01% over the past month, lagging the Computer and Technology sector's loss of 3.41% and the S&P 500's loss of 4.31% in that time.

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 $2.66 per share. This would mark year-over-year growth of 11.3%. Meanwhile, our latest consensus estimate is calling for revenue of $1.26 billion, up 37.47% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.74 per share and revenue of $5.16 billion. These totals would mark changes of +21.91% and +37.99%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Generac Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate has moved 0.68% higher within the past month. Generac Holdings is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Generac Holdings's current valuation metrics, including its Forward P/E ratio of 18.9. Its industry sports an average Forward P/E of 18.9, so we one might conclude that Generac Holdings is trading at a no noticeable deviation comparatively.

We can also see that GNRC currently has a PEG ratio of 1.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Power Generation industry currently had an average PEG ratio of 1.89 as of yesterday's close.

The Electronics - Power Generation industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% 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.

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

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