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Generac Holdings (GNRC) Ascends But Remains Behind Market: Some Facts to Note

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The latest trading session saw Generac Holdings (GNRC - Free Report) ending at $128.26, denoting a +0.09% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 0.11%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.23%.

The the stock of generator maker has risen by 16.41% in the past month, leading the Computer and Technology sector's gain of 1.54% and the S&P 500's gain of 1.5%.

Market participants will be closely following the financial results of Generac Holdings in its upcoming release. The company is expected to report EPS of $0.81, up 28.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $887 million, down 0.1% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.31 per share and a revenue of $4.22 billion, indicating changes of +16.85% and +4.88%, respectively, from the former 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.25% lower. Generac Holdings presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Generac Holdings is currently being traded at a Forward P/E ratio of 20.29. Its industry sports an average Forward P/E of 15.06, so one might conclude that Generac Holdings is trading at a premium comparatively.

We can additionally observe that GNRC currently boasts a PEG ratio of 2.03. 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. Electronics - Power Generation stocks are, on average, holding a PEG ratio of 4.45 based on yesterday's closing prices.

The Electronics - Power Generation industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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