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Generac (GNRC) Forms Grid Services Group to Offer New Value Stream

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Generac Holdings Inc. (GNRC - Free Report) has created a new group, Generac Grid Services, marking a significant step toward its evolution into an energy technology company.

Bud Vos, the current president of Enbala Power Networks (a Generac subsidiary) has been named president of Generac Grid Services. He will now report to Aaron Jagdfeld, president and chief executive officer of Generac.

Generac Grid Services will provide solutions directly to utilities, grid operators, and energy markets. It will leverage products from across the enterprise that includes home standby generators, PWRcell storage systems, and industrial natural gas generators.

Generac is a leading global manufacturer of energy technology solutions and other power products. The stock has surged 146.2% in the past year compared with the industry’s growth of 83.1%.

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Customers are looking for alternative ways to generate and store the power needed to address the challenges associated with an outdated electrical grid. Generac Grid Services will enable the company to provide a range of solutions and a new value stream for its customers.

Generac Grid Services was formed primarily through the acquisition of Enbala Power Networks in October 2020. Enbala’s Concerto software platform is an open solution for virtual power plants and distributed energy resource management systems. With this platform, power generation and storage products can be organized as part of a distributed energy solution.

Generac’s home standby generators, commercial generators, and PWRcell solar + battery storage systems are being built as Smart Grid Ready, allowing its customers to sell power back to the grid and offset their energy expenses.

The Smart Grid Ready capabilities are being offered through Generac’s Enbala Concerto platform. Climate change and an aging electrical grid with frequent power outages are boosting growth opportunities for the company.

The stock currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry are Clearfield, Inc. (CLFD - Free Report) , Juniper Networks, Inc. (JNPR - Free Report) , and Qualcomm, Inc. (QCOM - Free Report) . While Clearfield sports a Zacks Rank #1 (Strong Buy), Juniper and Qualcomm carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Clearfield delivered a trailing four-quarter earnings surprise of 49%, on average.

Juniper pulled off a trailing four-quarter earnings surprise of 7.5%, on average.

Qualcomm delivered a trailing four-quarter earnings surprise of 13.5%, on average.

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