Back to top

Analyst Blog

Shares of Generac Holdings Inc. (GNRC - Snapshot Report) hit a new 52-week high of $57.05 on Dec 24, and eventually closed at $56.13. Share prices of this diversified machinery company have been on a rise due to its strong inorganic growth momentum.

Year-to-date, Generac’s share prices have recorded a healthy return of 81.7%. The company’s long-term estimated earnings per share growth rate is 10.3%. Average volume of shares traded over the last three months came in at 764K.

Growth Drivers

Generac has been performing well in the past few quarters and intends to grow further. In concurrence with the same, the company recently acquired the generators products division of Baldor Electric Company. The assets acquired will complement Generac Holdings’ existing line of business and enable deeper penetration into the North American and international markets served by Baldor Electric’s generator division. Products including portable, mobile, standby and prime power generators ranging from 3kW to 2.5MW are expected to be added to the company’s portfolio.

Earlier in Aug 2013, the company acquired Tower Light Srl and its subsidiaries from the European private equity fund, Ambienta I. Based in Italy, Tower Light is a leader in the development and supply of mobile light towers. Additionally, the company has been launching products to gain a higher market share.

Generac reported positive earnings surprise in all the four previous quarters, with the average surprise for the same being 25.6%. The growth in business is reflected in the upward revision of the sales and earnings guidance for 2013.

Other Stocks to Consider

With a Zacks Rank #2 (Buy), Generac currently has a market capitalization of $3.9 billion. Some other stocks in the industry worth a watch include Xylem Inc. (XYL - Analyst Report), DXP Enterprises, Inc. (DXPE - Snapshot Report) and Graham Corp. (GHM - Snapshot Report). While Xylem carries a Zacks Rank #1 (Strong Buy), Graham Corp. and DXP Enterprises hold a Zacks Rank #2.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
HI CRUSH PA… HCLP 68.05 +4.74%
CTPARTNERS… CTP 12.91 +3.12%
QIHOO 360 T… QIHU 90.56 +3.11%
HOLLYSYS AU… HOLI 22.85 +2.97%
BONANZA CRE… BCEI 61.57 +2.94%