Generac Holdings (GNRC) closed at $451.31 in the latest trading session, marking a -0.86% move from the prior day. This change lagged the S&P 500’s daily loss of 0.77%.
Coming into today, shares of the generator maker had gained 7.54% in the past month. In that same time, the Computer and Technology sector gained 3.13%, while the S&P 500 gained 1.55%.
Investors will be hoping for strength from GNRC as it approaches its next earnings release. On that day, GNRC is projected to report earnings of $2.39 per share, which would represent year-over-year growth of 14.9%. Our most recent consensus estimate is calling for quarterly revenue of $962.31 million, up 37.21% from the year-ago period.
GNRC’s full-year Zacks Consensus Estimates are calling for earnings of $10.06 per share and revenue of $3.71 billion. These results would represent year-over-year changes of +55.49% and +49.31%, respectively.
Investors might also notice recent changes to analyst estimates for GNRC. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. GNRC is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note GNRC’s current valuation metrics, including its Forward P/E ratio of 45.27. Its industry sports an average Forward P/E of 36, so we one might conclude that GNRC is trading at a premium comparatively.
Also, we should mention that GNRC has a PEG ratio of 6.96. 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. Electronics – Power Generation stocks are, on average, holding a PEG ratio of 6.09 based on yesterday’s closing prices.
The Electronics – Power Generation industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% 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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