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Generac Holdings (GNRC) Stock Sinks As Market Gains: What You Should Know
Generac Holdings (GNRC - Free Report) closed at $109.71 in the latest trading session, marking a -1.36% move from the prior day. This change lagged the S&P 500's daily gain of 0.17%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.67%.
Coming into today, shares of the generator maker had lost 5.91% in the past month. In that same time, the Computer and Technology sector gained 8.4%, while the S&P 500 gained 0.25%.
Wall Street will be looking for positivity from Generac Holdings as it approaches its next earnings report date. On that day, Generac Holdings is projected to report earnings of $0.59 per share, which would represent a year-over-year decline of 71.77%. Meanwhile, our latest consensus estimate is calling for revenue of $858.16 million, down 24.45% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.29 per share and revenue of $4.1 billion, which would represent changes of -24.49% and -10.16%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Generac Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.39% lower. Generac Holdings is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Generac Holdings is holding a Forward P/E ratio of 17.69. This represents a no noticeable deviation compared to its industry's average Forward P/E of 17.69.
Also, we should mention that GNRC has a PEG ratio of 1.77. 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 1.45 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 183, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow GNRC in the coming trading sessions, be sure to utilize Zacks.com.