Back to top

Analyst Blog

Generac Holdings Inc. (GNRC - Free Report) recently announced that it has signed an agreement to acquire Motortech Holding GmbH & Co. KG. Financial terms of the transaction were kept under wraps.

Motortech Holding GmbH, based in Celle, Germany, is a recognized manufacturer of gaseous-engine control systems, including knock detection, mixers, throttles and various controls, and accessories. Gaseous-engine control systems are widely sold to gas-engine manufacturers in Europe and to other aftermarket customers.

This acquisition will enable Generac Holdings to expand its spark-ignited engine generator business globally through new and improved offerings. Moreover, the company expects the buyout to boost its revenues as well as strengthen the workforce with the addition of more than 250 skilled employees.

Subject to regulatory approvals, Generac Holdings anticipates closing the transaction in the first quarter of 2017.

We believe the latest acquisition is consistent with Generac Holdings’ strategic expansion policy. It is also indicative of its strong balance sheet and healthy cash position. In Mar 2016, the company acquired the majority shares of PR Industrial S.r.l and its subsidiaries.

With a market capitalization of $2.65 billion, Generac Holdings currently sports a Zacks Rank #1 (Strong Buy). Other favorably ranked stocks in the industry include Cognex Corporation (CGNX - Free Report) , Itron, Inc. (ITRI - Free Report) and Teradyne Inc. (TER - Free Report) . Each of the stocks sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cognex Corporation posted better-than-expected results in the last four quarters, with a positive average earnings surprise of 24.92%. Also, the earnings estimates for 2016 and 2017 have been revised upward over the past 60 days.

Itron’s earnings estimates for 2016 and 2017 have been revised upward in the last 60 days. The average earnings surprise for the trailing four quarters was a positive 30.55%.
 
Teradyne reported better-than-expected results in the last four quarters, with an average positive earnings surprise of 19.26%. Also, earnings expectations for 2016 and 2017 have improved over the past 60 days.

The Best Place to Start Your Stock Search

Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>