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

Generac Holdings (GNRC) closed at $220.25 in the latest trading session, marking a -1.67% move from the prior day. This change lagged the S&P 500's 0.22% gain on the day. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.26%.

Prior to today's trading, shares of the generator maker had gained 0.13% over the past month. This has outpaced the Computer and Technology sector's loss of 8.36% and the S&P 500's loss of 8.32% in that time.

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 $2.66 per share. This would mark year-over-year growth of 11.3%. Our most recent consensus estimate is calling for quarterly revenue of $1.26 billion, up 37.47% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.74 per share and revenue of $5.16 billion. These totals would mark changes of +21.91% and +37.99%, respectively, from last year.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.66% higher. Generac Holdings is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Generac Holdings's current valuation metrics, including its Forward P/E ratio of 19.08. Its industry sports an average Forward P/E of 19.08, so we one might conclude that Generac Holdings is trading at a no noticeable deviation comparatively.

Investors should also note that GNRC has a PEG ratio of 1.91 right now. 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 1.91 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 228, which puts it in the bottom 10% 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.

To follow GNRC in the coming trading sessions, be sure to utilize Zacks.com.

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