Why Generac Holdings (GNRC) is a Top Value Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Generac Holdings (GNRC)
Headquartered in Waukesha, WI, and founded in 1959, Generac Holdings Inc is a leading manufacturer of backup and prime power generation systems for residential and C&I applications, solar + battery storage solutions, advanced power grid software platforms and services, energy management devices and controls along with engine and battery-powered tools and equipment.
GNRC sits at a Zacks Rank #2 (Buy), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Electronics - Power Generation industry's P/E of 7.6X, shares of Generac Holdings are trading at a forward P/E of 21.7X. GNRC also has a PEG Ratio of 1.8, a Price/Cash Flow ratio of 17X, and a Price/Sales ratio of 2.1X.
A company's earnings performance is important for value investors as well. For fiscal 2024, 11 analysts revised their earnings estimate higher in the last 60 days for GNRC, while the Zacks Consensus Estimate has increased $0.18 to $6.44 per share. GNRC also holds an average earnings surprise of 9.8%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding GNRC to their portfolios.
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Generac Holdings Inc. (GNRC) : Free Stock Analysis Report