Generac Holdings Inc. (GNRC): Today's Featured Industrial Goods Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Generac Holdings ( GNRC) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.6%. By the end of trading, Generac Holdings fell $0.45 (-1.2%) to $38.17 on heavy volume. Throughout the day, 1,389,528 shares of Generac Holdings exchanged hands as compared to its average daily volume of 832,900 shares. The stock ranged in price between $38.04-$39.36 after having opened the day at $38.79 as compared to the previous trading day's close of $38.62. Other companies within the Industrial Goods sector that declined today were: Tower International ( TOWR), down 11.3%, Exide Technologies ( XIDE), down 9.8%, Comstock ( CHCI), down 8.9% and THT Heat Transfer Technology ( THTI), down 8.8%.
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Generac Holdings Inc. designs, manufactures, and markets a range of generators and other engine powered products for the residential, light commercial, industrial, and construction markets in the United States Canada, and Mexico. Generac Holdings has a market cap of $2.6 billion and is part of the industrial industry. The company has a P/E ratio of 23.3, above the S&P 500 P/E ratio of 17.7. Shares are up 12.6% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate Generac Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Generac Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, increase in net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, MagneGas Corporation ( MNGA), down 28.5%, Continental Materials Corporation ( CUO), down 10.7%, Astronics Corporation ( ATRO), down 9.8% and Ecotality ( ECTY), down 9.3% , were all gainers within the industrial goods sector with Terex ( TEX) being today's featured industrial goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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