Yahoo News Generac Holdings (GNRC) Gains But Lags Market: What You Should Know
In the latest trading session, Generac Holdings (GNRC) closed at $233.32, marking a +1.3% move from the previous day. The stock lagged the S&P 500's daily gain of 2.48%. At the same time, the Dow added 1.85%, and the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the generator maker had lost 25.96% in the past month. In that same time, the Computer and Technology sector lost 13.99%, while the S&P 500 lost 7.81%.
Investors will be hoping for strength from Generac Holdings as it approaches its next earnings release, which is expected to be May 4, 2022. The company is expected to report EPS of $1.90, down 20.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.08 billion, up 34.16% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.46 per share and revenue of $5.01 billion, which would represent changes of +19% and +34.14%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Generac Holdings. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.75% lower within the past month. Generac Holdings currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Generac Holdings is holding a Forward P/E ratio of 20.1. For comparison, its industry has an average Forward P/E of 19.32, which means Generac Holdings is trading at a premium to the group.
Meanwhile, GNRC's PEG ratio is currently 2.01. 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 2.01 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 212, which puts it in the bottom 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Generac Holdings Inc. (GNRC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
