#1 - Generac Holdings (NYSE:GNRC)
By many conventional metrics, Generac Holdings Inc. (NYSE: GNRC) doesn’t look undervalued. The company’s forward P/E ratio of 21x is approximately in line with the average of the S&P 500 and the stock is up more than 30% in the last 12 months.
However, the stock is down about 7.7% in the last month after hitting a level of resistance around the $156 level. That makes it oversold at the very least. But is there a bullish case to buy GNRC stock at this level.
First, consider that the company’s revenue and earnings have held up well year-over-year despite rising interest rates. With interest rates heading lower, consumers may be more willing to take on a big-ticket item such as a home generator.
That’s likely part of the thinking of the analysts. The Generac analyst forecasts on MarketBeat have a consensus price target of $154.71 for GNRC. That’s only a gain of about 7%. But since the company’s last earnings report on July 31, eight analysts have raised their price targets with two giving the stock a $200 price target.
About Generac
Generac Holdings Inc designs, manufactures, and distributes various energy technology products and solution worldwide. The company offers residential automatic standby generators, automatic transfer switch, air-cooled engine residential standby generators, and liquid-cooled engine generators; Mobile Link, a remote monitoring system for home standby generators; residential storage solution, which consists of a system of batteries, an inverter, photovoltaic optimizers, power electronic controls, and other components; smart home solutions, such as smart thermostats and a suite of home monitoring products.
Read More - Current Price
- $166.32
- Consensus Rating
- Hold
- Ratings Breakdown
- 11 Buy Ratings, 9 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $154.71 (7.0% Downside)
