Today's Post-Market Laggard Is Generac Holdings (GNRC)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Generac Holdings ( GNRC) as a post-market laggard 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 $71.2 million.
  • GNRC is down 3.9% today from today's close.

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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 21.1. Currently there are 3 analysts that rate Generac Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Generac Holdings has been 815,500 shares per day over the past 30 days. Generac has a market cap of $3.3 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.76 and a short float of 6% with 2.18 days to cover. Shares are down 17.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Generac Holdings as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins, reasonable valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength 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.
  • GENERAC HOLDINGS INC's earnings per share declined by 31.5% 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 ($3.74 versus $2.49).
  • 35.89% 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 10.14% compares favorably to the industry average.
  • GNRC, with its decline in revenue, slightly underperformed the industry average of 6.2%. Since the same quarter one year prior, revenues fell by 14.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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