Generac is Monday's IBD Stock Of The Day, as Hurricane Milton grows into a Category 5 storm, heading for Florida just days after Hurricane Helene ripped through the Southeastern U.S. Generac jumped into a buy zone Monday following an upgrade and is flashing some bullish signals.
OTR Global upgraded the Waukesha, Wis.-based Generac with a positive rating, up from mixed, on Monday. The firm cited research that shows that third-quarter U.S. residential sales of standby generators increased on a dollar basis vs. a year ago. The 2024 outlook is for continued growth.
Meanwhile, Hurricane Milton rapidly intensified on Monday. The National Hurricane Center expects Milton to weaken before hitting Florida's west coast on Tuesday or Wednesday. Hurricane Milton was a Category 1 storm late Sunday but has quickly strengthened in recent hours.
Reading The Generac Stock Chart
Generac stock tends to swing higher during natural disasters as people and agencies rush to purchase generators. It surged 8.5% to 173.84 during Monday's stock market action. That put shares in a buy zone above a 169.57 buy point, according to MarketSurge charts.
The breakout received affirmation from the stock's relative strength line, which broke to a 52-week high alongside the move past the buy point. This is a bullish corroboration.
Volume was also bullish, running 240% above average in afternoon trading.
Last week, GNRC advanced more than 3%, adding to a 9% gain the prior week, lifted by Hurricane Helene. Generac stock is now up 9.4% in October, with a more than 30% gain so far this year.
Home Depot and Lowe's, two other stocks that tend to see a market impact from natural disasters, did not move much on Monday.
Generac stock has an 85 Composite Rating out of a best-possible 99. Shares also have an 88 Relative Strength Rating and an 86 EPS Rating. The company has not yet announced a reporting date for its third-quarter results.
Please follow Kit Norton on X @KitNorton for more coverage.
YOU MAY ALSO LIKE:
Is Tesla Stock A Buy Or A Sell?
Get Full Access To IBD Stock Lists And Ratings
Learning How To Pick Great Stocks? Read Investor's Corner
The Tesla Robotaxi Event Approaches; But What About Waymo
AI Is Fueling A 'Nuclear Renaissance.' Bill Gates And Jeff Bezos Are In The Mix.
