On Oct 3, Zacks Investment Research upgraded
Generac Holdings Inc.
) to a Zacks Rank #1 (Strong Buy).
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Why the Upgrade?
The affordable power solution provider, Generac Holdings has
witnessed rising earnings estimates on the back of its ongoing
strong operational performance.
In 2013, Generac Holdings expects to register a 20%
year-over-year increase in sales. Strong demand for home standby
and portable generators, and an improved outlook for C&I
shipments will help the company to achieve its goal.
As declared earlier, Generac Holdings was able to close the
acquisition of a leading designer and manufacturer of generators
and other engine powered products. This acquisition will enhance
Generac's market penetration in Europe, the Middle East and
With respect to earnings performance, the company has delivered
positive earnings surprises in the last 4 quarters with an
average beat of 19.64%. The second quarter results of the company
were higher than the Zacks Consensus Estimate and the year-ago
figure. Strong sales and improved margins boosted the performance
of the company.
The Zacks Consensus Estimate for 2013 increased 5.7% in the last
60 days to $2.86. For 2014, the Zacks Consensus Estimate
increased 1.2% to $3.45 over the same timeframe. The long-term
earnings growth of the company is presently pegged at 10.33%
driven by sales growth of 32.85%.
Other Stocks to Consider
Besides Generac Holdings Inc., a few other companies in the
sector are also performing well and have a favorable Zacks Rank.
Altra Holdings, Inc.
The Babcock & Wilcox Company
), each with a Zacks Ranks #2 (Buy).