U.S. markets closed
  • S&P 500

    4,185.47
    +15.05 (+0.36%)
     
  • Dow 30

    34,200.67
    +164.68 (+0.48%)
     
  • Nasdaq

    14,052.34
    +13.58 (+0.10%)
     
  • Russell 2000

    2,262.67
    +5.60 (+0.25%)
     
  • Crude Oil

    63.07
    -0.39 (-0.61%)
     
  • Gold

    1,777.30
    +10.50 (+0.59%)
     
  • Silver

    26.04
    +0.08 (+0.29%)
     
  • EUR/USD

    1.1980
    +0.0004 (+0.04%)
     
  • 10-Yr Bond

    1.5730
    +0.0430 (+2.81%)
     
  • GBP/USD

    1.3840
    +0.0056 (+0.41%)
     
  • USD/JPY

    108.7830
    +0.0670 (+0.06%)
     
  • BTC-USD

    61,030.15
    -893.70 (-1.44%)
     
  • CMC Crypto 200

    1,398.97
    +7.26 (+0.52%)
     
  • FTSE 100

    7,019.53
    +36.03 (+0.52%)
     
  • Nikkei 225

    29,683.37
    +40.68 (+0.14%)
     

Here's Why Generac (GNRC) is a Promising Pick for Investors

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Shares of Generac Holdings Inc. GNRC have returned 203.8% in the past year compared with 160.3% growth of the industry. Currently, the stock carries a Zacks Rank #2 (Buy) and has a VGM Score of B.



This Waukesha, WI-based company delivered a trailing four-quarter earnings surprise of 24.2%, on average. The Zacks Consensus Estimate for its current-year earnings has been revised 2.1% upward over the past seven days.

Growth Drivers

Generac is a leading manufacturer of energy technology solutions and other power products. The company continues to see unprecedented demand for its home standby generators due to higher power outages, while the ‘Home as a Sanctuary’ trend gains traction.

Changes in the energy landscape, drastic climate change, aging power infrastructure and deployment of super-fast 5G technology are likely to spur secular growth opportunities for Generac. The company aims to capitalize on these key growth drivers by generating more sales through higher market penetration. A diversified distribution channel further ensures that the products reach a broad global customer base.

The company has the largest network of factory direct independent generator dealers in the industry in North America. Generac intends to diversify its business model from being the sole equipment-centric to a systems and services provider through connectivity solutions and subscription-based applications. Its products are well suited to accelerate the transition from traditional fossil fuel to clean environment-friendly natural gas.

Generac announced plans to open new manufacturing, assembly and distribution operation in Trenton, SC. The facility will support increased demand for home standby generators and associated energy technologies. It will also serve as a distribution center to customers in the southeast part of the United States. This reflects increased demand for power generation and new energy technologies.

Furthermore, Generac established a new business organization as part of its ‘Powering Our Future’ strategy. Named Energy Technology (“ET”), the new organization comprises all Generac’s businesses, which mainly focuses on products or services related to storage and energy management products. These consist of Generac’s acquired Pika Energy, Neurio Technologies and Enbala Power Networks as well as its existing connectivity business. The combination of these teams into one operating group will help position the company as an emerging leader in the energy storage and management industry. It will also align business priorities and accelerate Generac’s go-to-market efforts. The ET organization will serve as the operating platform for future potential acquisitions in the energy technology industry.

The company expects 2021 to be a very strong year, given the significant momentum for its residential products and an expected return to growth for its Commercial & Industrial products. A strong balance sheet and significant liquidity enable Generac to capitalize on key trends and drive additional shareholder value by expanding its addressable markets.

Other Decent Choices

Some other top-ranked stocks in the broader industry are Aviat Networks AVNW, Plantronics PLT and Ubiquiti UI, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aviat Networks delivered a trailing four-quarter earnings surprise of 61.7%, on average.

Plantronics delivered a trailing four-quarter earnings surprise of 560.4%, on average.

Ubiquiti delivered a trailing four-quarter earnings surprise of 37.1%, on average.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>


Want 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

Aviat Networks, Inc. (AVNW) : Free Stock Analysis Report

Plantronics, Inc. (PLT) : Free Stock Analysis Report

Generac Holdings Inc. (GNRC) : Free Stock Analysis Report

Ubiquiti Inc. (UI) : Free Stock Analysis Report

To read this article on Zacks.com click here.