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

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Generac Holdings (GNRC - Free Report) closed the most recent trading day at $116.77, moving -1.23% from the previous trading session. This move lagged the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq lost 5.66%.

Coming into today, shares of the generator maker had gained 4.78% in the past month. In that same time, the Computer and Technology sector gained 9.07%, while the S&P 500 gained 3.44%.

Investors will be hoping for strength from Generac Holdings as it approaches its next earnings release. The company is expected to report EPS of $1.20, down 59.87% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $984.84 million, down 23.74% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.98 per share and revenue of $4.13 billion, which would represent changes of -28.21% and -9.57%, respectively, from the prior year.

Any recent changes to analyst estimates for Generac Holdings should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.47% higher. Generac Holdings is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Generac Holdings currently has a Forward P/E ratio of 19.78. This valuation marks a premium compared to its industry's average Forward P/E of 15.95.

Meanwhile, GNRC's PEG ratio is currently 1.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Power Generation was holding an average PEG ratio of 1.55 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 222, putting it in the bottom 12% 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.

Be sure to follow all of these stock-moving metrics, and many more, on

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