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Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Generac Holdings as such a stock due to the following factors:
- GNRC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.3 million.
- GNRC has traded 475,846 shares today.
- GNRC is trading at 11.11 times the normal volume for the stock at this time of day.
- GNRC is trading at a new low 6.02% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on GNRC:
Generac Holdings Inc. designs, manufactures, and markets power generation equipment and other engine powered products for the residential, light commercial, industrial, and construction markets in the United States, Canada, and internationally. GNRC has a PE ratio of 18.5. Currently there are 2 analysts that rate Generac Holdings a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Generac Holdings has been 1.1 million shares per day over the past 30 days. Generac has a market cap of $3.2 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.81 and a short float of 28.7% with 13.08 days to cover. Shares are up 2.7% year-to-date as of the close of trading on Monday.
rates Generac Holdings as a
. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- GENERAC HOLDINGS INC's earnings per share declined by 22.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GENERAC HOLDINGS INC increased its bottom line by earning $2.49 versus $1.36 in the prior year. This year, the market expects an improvement in earnings ($3.15 versus $2.49).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.2%. Since the same quarter one year prior, revenues slightly dropped by 3.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- 37.98% is the gross profit margin for GENERAC HOLDINGS INC which we consider to be strong. Regardless of GNRC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GNRC's net profit margin of 10.35% compares favorably to the industry average.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, GENERAC HOLDINGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, GNRC has underperformed the S&P 500 Index, declining 9.23% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
- You can view the full Generac Holdings Ratings Report.