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Generac (GNRC) & Wallbox Partner to Improve Distribution Network

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Generac Holdings (GNRC - Free Report) has made a minority investment in a leading smart electric vehicle charging and energy management company — Wallbox. This investment involves a Generac representative joining Wallbox's board of directors and a global deal to offer Generac's customers advanced energy management systems.  

The partnership will improve Generac’s distribution capacity in the United States by providing its customers with Wallbox's range of EV charging solutions, which includes L2 AC chargers and its bidirectional charger, Quasar 2.

The collaboration aims to boost the development of energy ecosystems for businesses by offering reliable fast chargers and supporting the growing demand for EVs and renewable energy. The collaboration aligns with Generac’s strategy to expand energy solutions for homes, businesses, and industries.

Per a report from MarketsandMarkets, the global EV charging station market is expected to reach $76.9 billion by 2027, witnessing a CAGR of 45% from 2022 to 2027. The industry is expected to benefit from the rise in the adoption of electric vehicles owing to government initiatives.

GNRC is a leading manufacturer of power generation equipment, energy storage systems, and other power products, including portable, residential, commercial and industrial generators. Significant changes in the energy landscape, drastic climate change, aging power infrastructure and the deployment of superfast 5G technology are likely to spur secular growth opportunities for Generac.

In September, the company announced the launch of an advanced engineering center in Reno, NV. This new facility is focused on developing and testing various clean energy solutions, including batteries, switches, and power electronics. The facility will be operational by May 2024 and incorporate a comprehensive simulation to replicate power outage scenarios, further aligning with the company's commitment to carbon neutrality objectives.

Prior to that, the company unveiled plans to set up a new manufacturing facility in Beaver Dam, WI, in association with the City of Beaver Dam. The construction of this new facility is aimed at fulfilling the increasing demand for GNRC's industrial generators.

Generac currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 30.3% against the sub-industry’s decline of 31.5%.

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Stocks to Consider

Some better-ranked stocks in the broader technology space are Pegasystems (PEGA - Free Report) , Flex (FLEX - Free Report) and Watts Water Technologies (WTS - Free Report) . Pegasystems and Flex presently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Pegasystems’ 2023 EPS has improved 21.2% in the past 60 days to $1.77. PEGA delivered an average earnings surprise of 1,250.2% in the trailing four quarters. Shares of PEGA have jumped 49% in the past year.

The Zacks Consensus Estimate for Flex’s fiscal 2024 EPS has increased 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%.

Flex’s earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 11%. Shares of the company have risen 20.1% in the past year.

The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 2.8% in the past 60 days to $8.00. Watts Water’s long-term earnings growth rate is 7.8%.

WTS’ earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 11.8%. Shares of WTS have rallied 31.3% in the past year.

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