Generac Holdings, Inc.
) has been surging for the last three months, recently hitting a
new all-time high after almost doubling since late September. With
another strong quarter in hand and a bullish growth projection,
this Zacks #1 Rank stock is an industrial take on momentum.
Generac Holdings, Inc. designs, manufactures and sells backup power
generation products for residential, light-commercial and
industrial markets in the United States. The company was founded in
1959 and has a market cap of $1.1 billion.
Generac might not seem like the most glamorous company in the
world, but when you take a look at its share price, you might think
otherwise. That movement has been driven by impressive sales and
earnings growth, last on display in early November with strong Q3
results that came in ahead of expectations.
Revenue for the period was up 49% from last year to $239 million.
Earnings also came in strong at 75 cents, 19% ahead of the Zacks
The great quarter was driven by gains in the company's Residential
segment, where sales jumped 61% from last year. But commercial and
industrial sales were also strong, up 27%.
Generac has used its recent earnings momentum to strengthen its
financial profile, with cash and short-term investments up $11
million from last year to $139 million while total debt fell $98
million to $633 million.
We've seen some real nice movement in estimates over the last few
months, with the current year up 16% to $2.01. The next-year
estimate is up 17% in the same time to $2.30, a bullish 14% growth
But in spite of the gains, the valuation picture still looks solid,
with its PEG ratio of 1 directly in line with the benchmark for
On the chart, shares have been rallying for the last three months,
recently hitting a new all-time high on the good quarter. Look for
support from the trend line on any weakness. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com.
He is also the Editor in charge of the market-beating
Zacks Whisper Trader Service.
GENERAC HOLDING (
): Free Stock Analysis Report
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