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

Generac Holdings (GNRC) closed at $348.18 in the latest trading session, marking a -1.11% move from the prior day. This change lagged the S&P 500's daily loss of 0.1%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.1%.

Heading into today, shares of the generator maker had lost 17.08% over the past month, lagging the Computer and Technology sector's gain of 3.66% and the S&P 500's gain of 4.4% in that time.

Generac Holdings will be looking to display strength as it nears its next earnings release. In that report, analysts expect Generac Holdings to post earnings of $2.38 per share. This would mark year-over-year growth of 12.26%. Meanwhile, our latest consensus estimate is calling for revenue of $1.02 billion, up 34% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.52 per share and revenue of $3.69 billion, which would represent changes of +47.14% and +48.48%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Generac Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.87% lower. Generac Holdings is currently a Zacks Rank #5 (Strong Sell).

Looking at its valuation, Generac Holdings is holding a Forward P/E ratio of 36.97. Its industry sports an average Forward P/E of 36.97, so we one might conclude that Generac Holdings is trading at a no noticeable deviation comparatively.

We can also see that GNRC currently has a PEG ratio of 2.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Power Generation industry currently had an average PEG ratio of 4.3 as of yesterday's close.

The Electronics - Power Generation industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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