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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 $110, marking a -1.5% move from the previous day. This change lagged the S&P 500's 0.07% gain on the day. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq gained 0.01%.

Heading into today, shares of the generator maker had lost 1.48% over the past month, lagging the Computer and Technology sector's gain of 1.5% and the S&P 500's gain of 0.38% in that time.

Wall Street will be looking for positivity from Generac Holdings as it approaches its next earnings report date. The company is expected to report EPS of $1.53, down 12.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.04 billion, down 4.19% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.41 per share and revenue of $4.05 billion, which would represent changes of -35.05% and -11.19%, 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 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. 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 remained stagnant. Generac Holdings is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Generac Holdings is currently trading at a Forward P/E ratio of 20.63. Its industry sports an average Forward P/E of 15.49, so we one might conclude that Generac Holdings is trading at a premium comparatively.

Meanwhile, GNRC's PEG ratio is currently 2.06. 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. GNRC's industry had an average PEG ratio of 2.06 as of yesterday's close.

The Electronics - Power Generation industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 23% 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.

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

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