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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 the latest trading day at $126.14, indicating a +1.24% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.11%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq lost 0.12%.

The generator maker's shares have seen an increase of 12.18% over the last month, surpassing the Computer and Technology sector's gain of 3.59% and the S&P 500's gain of 3.55%.

The upcoming earnings release of Generac Holdings will be of great interest to investors. 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, our latest consensus estimate is calling for revenue of $887 million, down 0.1% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.32 per share and a revenue of $4.21 billion, indicating changes of +17.04% and +4.6%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Generac Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.04% lower within the past month. Generac Holdings currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Generac Holdings is currently being traded at a Forward P/E ratio of 19.7. This represents a premium compared to its industry's average Forward P/E of 15.25.

We can also see that GNRC currently has a PEG ratio of 1.97. 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 average PEG ratio for the Electronics - Power Generation industry stood at 4.76 at the close of the market yesterday.

The Electronics - Power Generation industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% 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.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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