Trade-Ideas LLC identified

Generac Holdings

(

GNRC

) as a strong 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 $28.7 million.
  • GNRC has traded 251,364 shares today.
  • GNRC is trading at 6.39 times the normal volume for the stock at this time of day.
  • GNRC is trading at a new high 6.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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:

TheStreet Recommends

Generac Holdings Inc. designs, manufactures, and markets power generation equipment and other engine powered products for the residential, light commercial, industrial, oil and gas, and construction markets in the United States, Canada, and internationally. GNRC has a PE ratio of 18. Currently there are 2 analysts that rate Generac Holdings a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Generac Holdings has been 883,600 shares per day over the past 30 days. Generac has a market cap of $2.1 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.73 and a short float of 21.2% with 14.23 days to cover. Shares are down 35.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Generac Holdings as a

hold

. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • GENERAC HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, GENERAC HOLDINGS INC's EPS of $2.49 remained unchanged from the prior years' EPS of $2.49. This year, the market expects an improvement in earnings ($2.74 versus $2.49).
  • GNRC, with its decline in revenue, slightly underperformed the industry average of 14.1%. Since the same quarter one year prior, revenues fell by 20.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for GENERAC HOLDINGS INC is currently lower than what is desirable, coming in at 34.69%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.14% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $16.32 million or 66.64% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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