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Generac Holdings (GNRC) Laps the Stock Market: Here's Why

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The most recent trading session ended with Generac Holdings (GNRC - Free Report) standing at $119.93, reflecting a +1.36% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.32%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.2%.

Coming into today, shares of the generator maker had gained 4.14% in the past month. In that same time, the Computer and Technology sector gained 6.04%, while the S&P 500 gained 5.11%.

Analysts and investors alike will be keeping a close eye on the performance of Generac Holdings in its upcoming earnings disclosure. On that day, Generac Holdings is projected to report earnings of $0.76 per share, which would represent year-over-year growth of 20.63%. In the meantime, our current consensus estimate forecasts the revenue to be $887 million, indicating a 0.1% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.32 per share and a revenue of $4.21 billion, signifying shifts of +17.04% and +4.6%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Generac Holdings. 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 2.04% lower within the past month. At present, Generac Holdings boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Generac Holdings is presently trading at a Forward P/E ratio of 18.71. This valuation marks a premium compared to its industry's average Forward P/E of 14.66.

Also, we should mention that GNRC has a PEG ratio of 1.87. 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 average PEG ratio for the Electronics - Power Generation industry stood at 4.65 at the close of the market yesterday.

The Electronics - Power Generation industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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