Generac Holdings (GNRC) Dips More Than Broader Markets: What You Should Know

Generac Holdings (GNRC) closed the most recent trading day at $180.22, moving -0.75% from the previous trading session. This change lagged the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq gained 0.03%.

Coming into today, shares of the generator maker had lost 21.57% in the past month. In that same time, the Computer and Technology sector lost 11.89%, while the S&P 500 lost 9.7%.

Investors will be hoping for strength from Generac Holdings as it approaches its next earnings release. In that report, analysts expect Generac Holdings to post earnings of $3.21 per share. This would mark year-over-year growth of 36.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.34 billion, up 41.86% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.90 per share and revenue of $5.17 billion. These totals would mark changes of +23.57% and +38.39%, respectively, from 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. Generac Holdings currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Generac Holdings currently has a Forward P/E ratio of 15.25. This represents a no noticeable deviation compared to its industry's average Forward P/E of 15.25.

Also, we should mention that GNRC has a PEG ratio of 1.53. 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. GNRC's industry had an average PEG ratio of 1.53 as of yesterday's close.

The Electronics - Power Generation industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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