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Generac Holdings (GNRC) Stock Sinks As Market Gains: What You Should Know

Generac Holdings (GNRC) closed the most recent trading day at $212.50, moving -0.32% from the previous trading session. This change lagged the S&P 500's daily gain of 0.34%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.02%.

Coming into today, shares of the generator maker had lost 20.31% in the past month. In that same time, the Computer and Technology sector lost 12.4%, while the S&P 500 lost 7.95%.

Wall Street will be looking for positivity from Generac Holdings as it approaches its next earnings report date. On that day, Generac Holdings is projected to report earnings of $3.21 per share, which would represent year-over-year growth of 36.6%. Meanwhile, our latest consensus estimate is calling for revenue of $1.34 billion, up 41.86% from the prior-year quarter.

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.

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It is also important to note the recent changes to analyst estimates for Generac Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.34% higher. Generac Holdings is currently a Zacks Rank #3 (Hold).

Investors should also note Generac Holdings's current valuation metrics, including its Forward P/E ratio of 17.91. For comparison, its industry has an average Forward P/E of 17.91, which means Generac Holdings is trading at a no noticeable deviation to the group.

It is also worth noting that GNRC currently has a PEG ratio of 1.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GNRC's industry had an average PEG ratio of 1.79 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 56, which puts it in the top 23% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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