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

Generac Holdings (GNRC) closed at $177.38 in the latest trading session, marking a -0.43% move from the prior day. This change lagged the S&P 500's 2.59% gain on the day. Meanwhile, the Dow gained 2.66%, and the Nasdaq, a tech-heavy index, added 0.11%.

Heading into today, shares of the generator maker had lost 20.26% over the past month, lagging the Computer and Technology sector's loss of 11.97% and the S&P 500's loss of 9.22% in that time.

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 $2.62 per share, which would represent year-over-year growth of 11.49%. Our most recent consensus estimate is calling for quarterly revenue of $1.34 billion, up 41.88% from the year-ago period.

GNRC's full-year Zacks Consensus Estimates are calling for earnings of $11.93 per share and revenue of $5.17 billion. These results would represent year-over-year changes of +23.88% and +38.44%, respectively.

Investors might also notice recent changes to analyst estimates for Generac Holdings. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.29% higher. Generac Holdings is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Generac Holdings has a Forward P/E ratio of 14.93 right now. Its industry sports an average Forward P/E of 14.93, so we one might conclude that Generac Holdings is trading at a no noticeable deviation comparatively.

It is also worth noting that GNRC currently has a PEG ratio of 1.49. 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. The Electronics - Power Generation was holding an average PEG ratio of 1.49 at yesterday's closing price.

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 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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