Generac Holdings Inc. GNRC has unveiled its newest home standby generator design, featuring the 28kW model, the most powerful air-cooled standby generator on the market. This launch broadens Generac’s range of reliable and efficient air-cooled generators, offering options from 10kW to 28kW. The new models are designed to work seamlessly with other Generac products, such as ecobee smart thermostats and PWRcell battery systems, providing a complete home energy solution.
Generac's new home standby product line is the latest addition to its advanced ecosystem of residential energy solutions, offering customers greater reliability, efficiency and improved energy management. The new generator line offers built-in cellular connectivity for real-time monitoring via smartphone, an advanced controller with features like electronic oil-level sensing and gas-pressure monitoring, and an all-aluminum cabinet for superior durability and aesthetics.
It also boasts an industry-first Electronic Fuel and Ignition Control (EFIC) system for improved motor performance and fuel efficiency, exceptional power output for sensitive electronics and a robust automatic transfer switch with surge protection. Fully integrating with ecobee smart thermostats, this generator provides enhanced control and efficiency for modern energy needs.
Generac Holdings Inc. Price and Consensus
Generac Holdings Inc. price-consensus-chart | Generac Holdings Inc. Quote
In 2024, the U.S. faced 1.5 billion hours of power outages, the highest since 2010. Power quality has declined, costs have risen 30% since 2020, and further investment is needed for cleaner energy and infrastructure upgrades. Generac’s new generators address the growing need for reliable backup power as utilities upgrade infrastructure and move toward cleaner energy solutions.
Generac updated its sales expectations for 2024 owing to recent power outage activity. For 2024, it expects revenues to increase 5-9% compared with the earlier guidance of 4-8%. Power outage activities have led to higher demand for Generac’s home standby and portable generators.
Generac has been making accretive investments in the production of home standby generators to meet the growing demand, supported by its strong operating and supply-chain capabilities. The company remains focused on expanding its residential dealer network, which reached 9,100 dealers by the end of the third quarter of 2024, indicating an increase of 400 dealers at the end of 2023. This expansion enhances the company’s ability to meet the growing demand for home standby generators and boost its market reach.
GNRC 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. The company expects an “outsized increase” in the Residential product division to partly offset weakness in the C&I business and Other product sales.
Generac’s Zacks Rank & Stock Price Performance
GNRC currently carries a Zacks Rank #3 (Hold). Shares of the company have soared 39.8% in the past year compared with the industry's growth of 15.4%.
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Stocks to Consider
Some better-ranked stocks from the broader technology space are Ubiquiti Inc. UI, InterDigital, Inc. IDCC and Intrusion Inc. INTZ. UI presently sports a Zacks Rank #1 (Strong Buy), whereas IDCC & INTZ carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ubiquiti’s fiscal 2025 earnings per share (EPS) is pegged at $7.30. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its shares have surged 143.3% in the past six months.
The Zacks Consensus Estimate for InterDigital’s 2024 EPS is pegged at $15.19, unchanged in the past 30 days. IDCC earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 163.7%. The company’s long-term earnings growth rate is 15%. Its shares have jumped 39.2% in the past six months.
INTZ’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 43.06%. In the last reported quarter, Intrusion delivered an earnings surprise of 16.67%. Its shares have surged 67.8% in the past six months.
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