Generac Power Systems, which is owned by
Generac Holdings Inc. ( GNRC Quick Quote GNRC - Free Report) , has announced a five-year development agreement with Enchanted Rock, LLC to supply its natural gas generators and control systems. Headquartered in Houston, TX, Enchanted Rock builds ultra-low emissions dual-purpose microgrids that provide industrial and government customers with reliable backup power and supply electric grid operators with crucial grid stability services. Generac Power Systems is considered a leading global supplier of energy technology solutions. With Generac as a key technology partner, Enchanted Rock is now well-positioned to develop advanced power resiliency systems across the United States. Generac’s shares have soared 132.4% in the past year compared with the industry’s growth of 74.8%. Image Source: Zacks Investment Research
As Enchanted Rock continues to grow with its customers and utility partners in new regions, it decided to expand its supply chain with Generac in order to meet its price and quality standards.
Together, the companies plan to create a disruptive force in the marketplace. The mutually beneficial partnership will reinforce their commitment to supplying the best quality power generation products. The microgrid solutions will be based on Generac’s rich-burn gaseous engine technology and Deep Sea Electronics control systems. By integrating Generac’s expertise into Enchanted Rock’s generator design, the companies aim to deliver the most robust product for use in a wide range of applications. The new units will be manufactured at Generac’s facility in Oshkosh, WI. These will feature Enchanted Rock’s patented quiet design and a compact footprint to protect businesses from interruptions during power outages. The generator systems will be used in various microgrid applications and will be maintained by Enchanted Rock. Generac recently created a new group, Generac Grid Services. This is a significant step toward its evolution into an energy technology and services company. 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’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 Quick Quote CLFD - Free Report) , Juniper Networks, Inc. ( JNPR Quick Quote JNPR - Free Report) , and Qualcomm, Inc. ( QCOM Quick Quote 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.