Generac Stock Rises to 52-Week High, Hits $169.69 From Investing.com

Generac Holdings Inc. (NYSE:) shares have reached a new 52-week high, trading at $169.69. This milestone reflects a significant increase in the company’s share value and marks a notable turnaround from previous positions within the year. Investors have shown increasing confidence in Generac, a leading manufacturer of power generation equipment and other engine-powered products, as the company’s strategic initiatives and market performance propelled the stock to these new heights. Over the past year, Generac has seen an impressive 63.36% change in its share price, indicating strong investor optimism and robust financial performance for the company.

In other recent news, Generac Holdings reported stable net sales of $998 million in the second quarter of 2024, in line with last year’s numbers. This was achieved despite a 10 percent decline in global commercial and industrial product sales, offset by an 8 percent growth in residential product sales. The company’s gross profit margin improved to 37.6% and adjusted EBITDA for the quarter was $165 million.

Generac’s acquisition of Ageto, a company known for its advanced microgrid controllers, is expected to expand its offerings in the commercial and industrial sectors. This move integrates Ageto’s technology into Generac’s energy systems, strengthening its position in the energy technology market.

Analysts at Canaccord Genuity and Piper Sandler maintained their “Buy” and “Overweight” ratings, respectively, on Generac, citing recent natural disasters and the company’s business performance as key factors. Analysts believe that these events may increase demand for Generac’s products.

Finally, Generac raised its full-year 2024 forecast, attributing this to increased demand for power outages. The company also made a $35 million minority investment in Wallbox (NYSE:) to expand its electric vehicle charging solutions. These recent developments reflect Generac’s continued commitment to growth and innovation in its sector.

Investing Pro Insights

Generac’s recent stock performance is consistent with several key financial metrics and analyst insights. According to InvestingPro data, Generac’s market capitalization stands at $10.06 billion, reflecting its significant presence in the power generation equipment sector. The company’s P/E ratio of 40.34 suggests that investors are willing to pay a premium for the company’s shares, perhaps due to expectations of future growth.

InvestingPro Tips highlight that Generac trades at a low P/E relative to its near-term earnings growth with a PEG ratio of 0.65. This suggests the stock may be undervalued given its growth prospects. Additionally, the company has delivered a strong return over the last month with a total price return of 14.73%, supporting the recent 52-week high performance mentioned in the article.

It is worth noting that 16 analysts have revised their earnings upwards for the coming period, suggesting positive expectations for Generac’s financial performance. This is consistent with the company’s current profitability, as data from InvestingPro shows that Generac was profitable with revenue of $4.02 billion in the last twelve months.

For readers interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for Generac that provide a deeper understanding of the company’s financial health and market position.

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