Generac Surges 40% in a Year: What Lies Ahead for the Stock?

Zacks09-25

Generac Holdings Inc. GNRC stock has surged 40.4% in the past year compared with the S&P 500 composite and the sub-industry’s growth of 31.5% and 19.6%, respectively. Closing at $150.84 in yesterday’s...

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Closing at $150.84 in yesterday’s...</p>\n\n<a href=\"https://finance.yahoo.com/news/generac-surges-40-lies-ahead-101100619.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Generac Surges 40% in a Year: What Lies Ahead for the Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGenerac Surges 40% in a Year: What Lies Ahead for the Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-25 18:11 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/generac-surges-40-lies-ahead-101100619.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Generac Holdings Inc. GNRC stock has surged 40.4% in the past year compared with the S&P 500 composite and the sub-industry’s growth of 31.5% and 19.6%, respectively. Closing at $150.84 in yesterday’s...</p>\n\n<a href=\"https://finance.yahoo.com/news/generac-surges-40-lies-ahead-101100619.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1923623000.USD","symbol_name":"Natixis Thematics AI & Robotics Fund R/A USD","start_time":0,"source_url":"https://finance.yahoo.com/news/generac-surges-40-lies-ahead-101100619.html","article_id":"2470253025","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/hb34T5JpqfOKFdxuauyatA--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/560ce7090345bb7408c706b8e0a8c3fc"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2470253025","pubTimestamp":1727259060,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Generac Holdings Inc. GNRC stock has surged 40.4% in the past year compared with the S&P 500 composite and the sub-industry’s growth of 31.5% and 19.6%, respectively. Closing at $150.84 in yesterday’s trading session, GNRC stock is currently trading 11% below its 52-week high of $169.57, attained on July 31, 2024.Headquartered in Waukesha, WI, Generac is a leading manufacturer of backup and prime power generation systems for residential and Commercial & Industrial (C&I) applications, solar and battery storage solutions, advanced power grid software platforms and services, energy management devices and controls, and engine and battery-powered tools and equipment.Power outage activities surged in second-quarter 2024 owing to Hurricane Beryl, which affected multiple markets across Texas. This led to a surge in demand for home standby and portable generators. Management also highlighted a notable increase in home consultation activity in July due to the severe storm. Generac updated its sa","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1923623000.USD":"Natixis Thematics AI & Robotics Fund R/A USD","LU1878469433.USD":"THREADNEEDLE (LUX) - AMERICAN SMALLER COMPANIES \"A\" (USD) ACC","BK4170":"电脑硬件、储存设备及电脑周边","LU2125909247.SGD":"Natixis Thematics Meta H-R/A SGD","LU1854103824.USD":"M&G (LUX) POSITIVE IMPACT \"A\" (USD) INC","LU2433249047.HKD":"THEMATICS META \"R/A\" (HKD) ACC","IE00B894F039.SGD":"Legg Mason ClearBridge - US Aggressive Growth A Acc SGD-H","LU1923622614.USD":"Natixis Thematics Meta R/A USD","BK4023":"应用软件","LU0390134368.USD":"FRANKLIN GLOBAL GROWTH \"A\" (USD) ACC","IE00BZ199S13.USD":"BNY MELLON MOBILITY INNOVATION \"B\" (USD) ACC","LU2298064838.USD":"NINETY ONE GSF GLOBAL ENVIRONMENT \"A\" (USD) INC","BK4585":"ETF&股票定投概念","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","IE00B19Z9P08.USD":"LEGG MASON CLEARBRIDGE US AGGRESSIVE GROWTH \"A\" (USD) INC","LU1854104046.USD":"M&G (LUX) POSITIVE IMPACT \"A\" (USD) ACC","LU1721428933.USD":"法巴全球经典环境基金RH MD Dis","BK4096":"电气部件与设备","GNRC":"Generac控股","ANSS":"安斯科技","IE00B19Z9Z06.USD":"Legg Mason ClearBridge - US Aggressive Growth A Acc USD","LU0823414478.USD":"法巴经典能源转换基金","LU1861214812.USD":"Blackrock Future of Transport A2 USD","BK4588":"碎股","LU1861219969.SGD":"Blackrock Future of Transport A2 SGD-H","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","STX":"希捷科技","LU1951198990.SGD":"Natixis Thematics AI & Robotics Fund H-R/A SGD-H","LU2125909593.SGD":"Natixis Thematics Meta R/A SGD","LU2238339852.HKD":"NINETY ONE GSF GLOBAL ENVIRONMENT \"A\" (HKD) ACC","LU1951200564.SGD":"Natixis Thematics AI & Robotics Fund R/A SGD","LU1939255532.USD":"NINETY ONE GSF GLOBAL ENVIRONMENT \"A\" (USD) ACC","BK4512":"苹果概念"},"translate_title":"Generac一年内飙升40%：该股的前景如何？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ANSS":1,"STX":1,"GNRC":1,"AMSWA":1},"content_text":"Generac Holdings Inc. GNRC stock has surged 40.4% in the past year compared with the S&P 500 composite and the sub-industry’s growth of 31.5% and 19.6%, respectively. Closing at $150.84 in yesterday’s trading session, GNRC stock is currently trading 11% below its 52-week high of $169.57, attained on July 31, 2024.\nHeadquartered in Waukesha, WI, Generac is a leading manufacturer of backup and prime power generation systems for residential and Commercial & Industrial (C&I) applications, solar and battery storage solutions, advanced power grid software platforms and services, energy management devices and controls, and engine and battery-powered tools and equipment.\nImage Source: Zacks Investment Research \nGNRC’s Residential Products to Gain From Power Outage\nPower outage activities surged in second-quarter 2024 owing to Hurricane Beryl, which affected multiple markets across Texas. This led to a surge in demand for home standby and portable generators. Management also highlighted a notable increase in home consultation activity in July due to the severe storm. Generac updated its sales expectations for 2024 owing to an increase in power outage activity, including the impact of Hurricane Beryl. For 2024, it now expects revenues to increase 4-8% compared with the earlier guidance of 3-7%.\nGNRC highlighted tremendous growth potential in the domestic market, where only approximately 6% of the addressable market of homes is currently equipped with residential standby generators. The low penetration rate signifies a big opportunity for growth, particularly as awareness of the need for backup power solutions continues to heighten amid volatile weather.\nGNRC’s Residential product sales jumped 8% year over year in the last reported quarter, driven by solid growth in home standby generator shipments. The mid-teens growth rate in home standby shipments from a weaker prior-year quarter performance (affected by excess field inventory) indicates improving market penetration. \nGNRC’s Margin Expansion Bodes Well\nMargin performance is gaining from a favorable sales mix and lower input expenses.\nIn the last reported quarter, gross profit was $375.6 million, up from $328.4 million in the prior-year quarter, with respective margins of 37.6% and 32.8%. Operating income came in at $103.2 million, up 20% year over year. Adjusted EBITDA, before deducting for non-controlling interests, was $165 million compared with $137 million in the prior year. \nGNRC’s Estimate Revision Northbound\nReflecting the positive sentiment around GNRC, the Zacks Consensus Estimate for earnings per share has seen upward revisions. In the past 60 days, analysts have increased their estimates for the current and the next quarters by 3.1% and 6.3% to $1.97 and $2.35 per share, respectively.\nMoreover, the estimates for the current and the next year have improved 5.2% and 0.6% to $6.50 and $8.11 per share, respectively. \nAttractive Valuation\nGenerac presents a compelling investment opportunity with its attractive forward 12-month price-to-earnings ratio of 19.62X, lower than the industry average of 28.28X observed in the past year.\nImage Source: Zacks Investment Research \nGNRC’s Troubled C&I Business Is an Overhang\nGenerac’s C&I segment has shown signs of recovery, but the pace has not been as expected. In the last reported quarter, C&I revenues totaled $344 million, down 10% year over year. The downside was due to softness in the domestic telecom and rental markets, which offset increases in shipments to industrial distributor customers. GNRC expects softness in telecom and rental markets to persist for the remaining part of the year.\nManagement anticipates continued downtrends for residential energy technology products and solutions throughout 2024. This is due to the troubled residential solar and storage market owing to structural modifications to California's net metering program and rising borrowing costs. \nNonetheless, Generac's acquisition of the PowerPlay Battery Energy Storage Systems unit from SunGrid Solutions and Ageto buyout is expected to boost its reach in the C&I energy storage market. \nGNRC's Zacks Rank\nGenerac’s attractive valuation, strategic collaborations and synergies from tuck-in acquisitions bode well. However, weakness in the C&I segment and residential energy technology solutions portfolio is a concern for this Zacks Rank #3 (Hold) company.  Consequently, it might not be a wise investment decision to bet on the Generac at the moment. \nStocks to Consider\nSome better-ranked stocks worth consideration in the broader technology space are Seagate Technology Holdings plc STX, American Software, Inc. AMSWA and ANSYS ANSS. While Seagate sports a Zacks Rank #1 (Strong Buy), AMSWA and ANSYS carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for STX’s fiscal 2025 EPS is pegged at $7.41, unchanged in the past 30 days. STX’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in the remaining quarter, with the average surprise being 80.9%. The stock has surged 68.1% in the past year.\nThe Zacks Consensus Estimate for American Software’s 2024 EPS is pegged at 38 cents, unchanged in the past seven days. AMSWA’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while matching in the remaining quarter, with the average surprise being 84.53%. Its shares have declined 3.2% in the past year.\nThe Zacks Consensus Estimate for ANSS’ 2024 earnings is pegged at $9.96, unchanged in the past 30 days. ANSS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing the mark once, with the average surprise being 4.8%. Its shares have gained 10.1% in the past year.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nSeagate Technology Holdings PLC (STX) : Free Stock Analysis Report\nANSYS, Inc. (ANSS) : Free Stock Analysis Report\nGenerac Holdings Inc. (GNRC) : Free Stock Analysis Report\nAmerican Software, Inc. (AMSWA) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2470253025"}