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Valued at a market cap of $9.2 billion, Generac Holdings Inc. (GNRC) designs, manufactures, and distributes various energy technology products and solutions. Based in Waukesha, Wisconsin, the company’s products include engines, alternators, transfer switches, mobile heaters, water pumps, energy monitoring devices, and other outdoor power equipment components for residential and commercial use.
Companies worth less than $10 billion are generally described as “mid-cap” stocks, and Generac Holdings fits into this category. The company is a leader in emergency power and preparedness and is renowned for its backup and prime power systems, solar and battery storage systems, and energy monitoring and management devices and services.
Shares of GNRC are trading 8.8% below their 52-week high of $169.57, which they reached on Jul. 31. Generac Holdings has gained 13.8% over the past three months, surpassing the broader Industrial Select Sector SPDR Fund’s (XLI) 10.8% return over the same time frame.
In the longer term, GNRC stock is up 19.7% on a YTD basis, outperforming XLI’s 18.5% gains. However, GNRC’s 42.1% gain over the past 52 weeks outperformed XLI’s 33% returns over the same time frame.
To confirm its bullish trend, GNRC has been trading above its 200-day moving average since late March and has recently been trading above its 50-day moving average.
On Jul. 31, shares of GNRC increased marginally following its Q2 earnings release. The company reported adjusted earnings of $1.35 per share, which surpassed Wall Street estimates of $1.24. However, its revenue of $998.2 million in the period slightly missed the consensus estimates.
GNRC has lagged behind its rival, Quanta Services, Inc. (PWR), which gained 57.1% over the past 52 weeks and 38.4% on a YTD basis.
Given that GNRC outperformed the broader sector recently, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 25 analysts in coverage, and the mean price target of $160.41 suggests a premium of 5.4% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
