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Generac Holdings (GNRC) Declines More Than Market: Some Information for Investors

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The most recent trading session ended with Generac Holdings (GNRC - Free Report) standing at $111.88, reflecting a -0.76% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.65%. Meanwhile, the Dow experienced a drop of 0.49%, and the technology-dominated Nasdaq saw a decrease of 0.96%.

Prior to today's trading, shares of the generator maker had lost 6.58% over the past month. This has lagged the Computer and Technology sector's gain of 2.19% and the S&P 500's gain of 3.27% in that time.

The investment community will be closely monitoring the performance of Generac Holdings in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.76, marking a 20.63% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $887 million, down 0.1% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $6.45 per share and a revenue of $4.21 billion, demonstrating changes of +19.44% and +4.6%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Generac Holdings. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 11.81% lower within the past month. As of now, Generac Holdings holds a Zacks Rank of #3 (Hold).

In the context of valuation, Generac Holdings is at present trading with a Forward P/E ratio of 17.49. This signifies a premium in comparison to the average Forward P/E of 13.52 for its industry.

Meanwhile, GNRC's PEG ratio is currently 1.75. 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 was holding an average PEG ratio of 4.49 at yesterday's closing price.

The Electronics - Power Generation industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 32, this industry ranks in the top 13% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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