Shares of Generac Holdings Inc. (GNRC - Free Report) reached a new 52-week high of $41.73 on Nov 17, 2016 before closing the trading session slightly lower at $41.41. This apex improved upon the last 52-week high of $41.56 touched on Nov 10.
As of Nov 17, the stock yielded a year-to-date return of 39.1%. The trading volume for the session was 0.64 million shares. Earnings estimate revisions for 2016 and 2017, along with an expected earnings growth rate of 9.7% for the next five years, indicate Generac Holdings’ potential for further price appreciation.
Generac Holdings performed well in third-quarter 2016, delivering a positive earnings surprise of 7.89%. Earnings for the quarter came in at 82 cents per share, beating the Zacks Consensus Estimate of 76 cents. Since the results release on Oct 26, market sentiments have been favorable toward the company, leading to a 9.4% hike in its share price.
For 2016, Generac Holdings anticipates improved demand for residential products to drive top-line growth. Sales are now anticipated to increase 9−10% year over year compared with 6−8% expected earlier. Also, the company reduced its organic sales decline estimate to 8−9% from the prior expectation of 10−13%. Cash flow from operating activities and free cash generation are projected to be solid.
Generac Holdings’ financial performance and future outlook have made investors optimistic about its growth prospects.
Estimate Revisions Show Potency
Over the last 30 days, the Zacks Consensus Estimate for Generac Holdings grew 3.9% to $2.93 for 2016 and 5% to $3.15 for 2017. The earnings estimates for 2016 and 2017 represent year-over-year growth of 2% and 7.5%, respectively. Also, the company has an Earnings ESP of +1.02% for 2016 and +0.32% for 2017. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
With a market capitalization of $2.6 billion, Generac Holdings currently sports a Zacks Rank #1 (Strong Buy). Other similarly-ranked stocks in the industry include Cognex Corporation (CGNX - Free Report) , Itron, Inc. (ITRI - Free Report) and Teradyne Inc. (TER - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
Cognex Corporation has posted an average positive earnings surprise of 24.92% in the last four quarters. Also, the earnings estimates for 2016 and 2017 have been revised upward over the past 60 days.
Itron’s earnings estimates for 2016 and 2017 have been revised upward in the last 60 days. The average earnings surprise for the trailing four quarters was a positive 30.55%.
Teradyne reported better-than-expected results in the last four quarters, with an average positive earnings surprise of 19.26%. Also, earnings expectations for 2016 and 2017 have improved over the past 60 days.
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