Generac benefits from increased demand for backup generators due to extreme weather events

From Nasdaq, Inc.: 2024-11-12 07:30:00

Generac Holdings Inc. (NYSE: GNRC) is benefitting from major storms and power outages as a leading manufacturer of backup generators for residential and commercial applications. The company is seeing increased demand due to extreme weather events and an aging power grid in the US.

The aging power grid infrastructure in the US is leading to more power outages, with energy generation rising 9% YoY in 2024. Generac has been selected for a $50 million grant to improve grid resilience in California. The company’s CEO highlights the growing need for backup power products.

Generac is focusing on international expansion in Europe and Asia to meet the rising demand for backup power solutions. The company’s Q3 2024 earnings beat expectations, with solid growth in residential and commercial sales. Despite challenges in the international market, Generac remains optimistic about its future growth.

GNRC triggered a bull flag breakout after a parabolic price run, with the stock surging through upper trendline resistance. The average consensus price target for Generac is $169.10, with bullish investors considering cash-secured puts to buy GNRC at Fibonacci pullback support levels. The stock has 11 Buy ratings, nine Holds, and one Sell rating.



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