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

Generac Holdings (GNRC) closed at $210.58 in the latest trading session, marking a -1.88% move from the prior day. This change lagged the S&P 500's 0.88% loss on the day. Elsewhere, the Dow lost 0.82%, while the tech-heavy Nasdaq added 0.08%.

Heading into today, shares of the generator maker had lost 12% over the past month, lagging the Computer and Technology sector's loss of 7.53% and the S&P 500's loss of 8.06% in that time.

Investors will be hoping for strength from Generac Holdings as it approaches its next earnings release. On that day, Generac Holdings is projected to report earnings of $2.66 per share, which would represent year-over-year growth of 11.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.26 billion, up 37.47% from the year-ago period.

GNRC's full-year Zacks Consensus Estimates are calling for earnings of $11.74 per share and revenue of $5.16 billion. These results would represent year-over-year changes of +21.91% and +37.99%, respectively.

Any recent changes to analyst estimates for Generac Holdings should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. Generac Holdings is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Generac Holdings has a Forward P/E ratio of 18.28 right now. For comparison, its industry has an average Forward P/E of 18.28, which means Generac Holdings is trading at a no noticeable deviation to the group.

We can also see that GNRC currently has a PEG ratio of 1.83. 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 1.83 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 224, which puts it in the bottom 12% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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

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