GNRC Stock Analysis — Generac Holdings Inc.
Sector: Industrials
AI Verdict
Generac trades at 22.1x next year's earnings for triple-digit growth, which is cheap if its dealer network can deliver, but the market is already assuming a huge rebound that leaves little room for disappointment.
Competitive Moat
Generac dominates the standby and portable generator market for residential and commercial customers, benefiting from a vast dealer network and brand trust in backup power. Its scale in distribution and service creates switching costs and local presence that are hard for new entrants to replicate.
Summary
Generac is on watch as analysts expect a 125.3% jump in earnings next year, slashing its forward P/E to 22.1x.
Where It Stands
The stock has returned 6.85% over the past year, trades at 22.1x forward earnings (just above the 20x industrials median), and its RSI of 59.7 signals neutral momentum.
Key Metrics
- RSI: 59.7 — Neutral
- Trailing P/E: 49.9x
- Forward P/E: 22.1x
- PEG Ratio: 0.40
- Earnings Growth: +1.3%
- Revenue Growth: +0.0%
- Market Cap: $12.7B
- 1-Year Return: 6.85%
- 52-Week High: $296.44
- 52-Week Low: $134.80
Analyst Consensus
21 Buy · 7 Hold · 0 Sell (28 analysts)
Bull Case
Forward EPS growth of 125.3% means you're paying 22.1x for a business expected to more than double earnings in a year — cheap for that level of growth if it materializes.
Bear Case
If the forward P/E reverts to the sector median of 20x, that's a 10% downside from here even before considering execution risk.
Catalyst to Watch
Watch for quarterly earnings to confirm whether the forecasted 125.3% EPS growth is actually tracking, as any miss could trigger a sharp rerating.