Generac Stock Skyrockets: Here’s Why Investors Are Piling In
Generac's stock just caught a rocket ride—and Wall Street's buzzing. Here's the breakdown.
The surge no one saw coming
While analysts were busy downgrading legacy industrials, Generac quietly stacked gains like a DeFi yield farmer in a bull market. No fancy earnings beat or acquisition news—just pure, unfiltered market momentum.
Power play or overextension?
The backup generator king's rally smells suspiciously like short-covering meets FOMO. Then again, when the grid fails (again), who you gonna call? Certainly not those 'stable' utility stocks.
The cynical take
Another case of 'buy the rumor, sell the news'—unless you actually believe in infrastructure spending timelines. Either way, the options market's pricing this like another GameStop. Buckle up.
A big leap in profitability, accompanied by a double beat
Generac's second-quarter results, published before market open on Wednesday, revealed that the company's net sales grew by 6% year over year to a bit over $1.06 billion. The company's two customer segments -- residential, and commercial and industrial -- grew at roughly similar rates over that stretch of time.
Image source: Getty Images.
Non-GAAP (adjusted) net income saw a more dramatic improvement, increasing by more than 18% to $97 million, or $1.65 per share.
This meant a double beat for Generac, as the consensus analyst estimates for sales and adjusted net profit were $1.03 billion and $1.35 per share, respectively. Compounding that, management boosted the bottom ends of its full-year growth projections for both revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
A clutch of price target hikes
Analysts tracking Generac stock were rather impressed by this performance, with several going so far as to raise their price targets on the stock. One of the more aggressive boosts came from's George Gianarikas, who cranked his fair value assessment to $250 per share from his previous $180. Almost needless to say, Gianarikas maintained his buy recommendation on the stock.
