GNRC Stock Analysis — Generac Holdings
Sector: Industrials
AI Verdict
Generac trades at 26x next year's earnings with analysts forecasting a 207.8% EPS surge—cheap for the growth if its dealer network and smart controls drive a real rebound, but any stumble makes this premium fragile.
Competitive Moat
Generac dominates the US home standby generator market with a vast dealer network and brand recognition, making it the default choice for residential backup power. Its moat is reinforced by proprietary control systems and integration with smart home energy management, which competitors struggle to replicate at scale.
Summary
Generac's stock has surged 91.38% in the past year on expectations of a 207.8% jump in earnings, despite a recent dip in revenue.
Where It Stands
With a 1-year return of 91.38%, an RSI of 64.7 (near pullback risk), and a forward P/E of 26.2x (just above the 20x industrials median), the market is betting big on a sharp earnings rebound.
Key Metrics
- RSI: 64.7 — Near Overbought
- Trailing P/E: 80.7x
- Forward P/E: 26.2x
- PEG Ratio: 0.39
- Earnings Growth: +2.1%
- Revenue Growth: -0.0%
- Market Cap: $12.7B
- 1-Year Return: 91.38%
- 52-Week High: $241.09
- 52-Week Low: $109.20
Analyst Consensus
20 Buy · 9 Hold · 0 Sell (29 analysts)
Bull Case
Forward P/E of 26.2x for 207.8% expected EPS growth means you're paying a modest premium for explosive earnings recovery if it materializes.
Bear Case
If the forward P/E compresses to the sector median of 20x, the stock could drop about 24%, especially if the RSI near 65 signals a pullback and the -2.0% revenue growth persists.
Catalyst to Watch
Watch for upcoming earnings to confirm whether the triple-digit EPS growth materializes or if revenue contraction continues.