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

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Generac Holdings (GNRC - Free Report) closed at $107.41 in the latest trading session, marking a +0.62% move from the prior day. This move outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.45%.

Prior to today's trading, shares of the generator maker had lost 7.13% over the past month. This has lagged the Computer and Technology sector's loss of 1.45% and the S&P 500's loss of 1.38% in that time.

Investors will be hoping for strength from Generac Holdings as it approaches its next earnings release. The company is expected to report EPS of $1.58, down 9.71% 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.

GNRC's full-year Zacks Consensus Estimates are calling for earnings of $5.41 per share and revenue of $4.05 billion. These results would represent year-over-year changes of -35.05% and -11.19%, respectively.

Investors might also notice recent changes to analyst estimates for Generac Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Generac Holdings currently has a Forward P/E ratio of 19.72. Its industry sports an average Forward P/E of 14.99, so we one might conclude that Generac Holdings is trading at a premium comparatively.

Also, we should mention that GNRC has a PEG ratio of 1.97. 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 industry currently had an average PEG ratio of 1.97 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 194, which puts it in the bottom 24% 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.

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

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