Key Takeaways
-
Generac shares gained this week as Hurricane Helene made landfall in the southeastern U.S.
-
The company produces home generators and other emergency power solutions.
-
Past storms like Hurricane Beryl have driven similar boosts in the company’s stock price.
Generac Holdings (GNRC), a producer of home generators and other emergency power solutions, has seen its shares gain as Hurricane Helene made landfall in the southeastern U.S.
“You are seeing people taking the situation into their own hands, whether it is backing up their own homes or business or doing something to produce their own power,” Generac CEO Aaron Jagdfeld said in an interview with Bloomberg last week.
Hurricane Helene made landfall in Florida Thursday as a Category 4 storm and has since weakened to a tropical storm moving into Georgia and South Carolina. More than 4 million homes and businesses were without power Friday morning in the southeastern U.S., according to the tracking site poweroutage.us.
Generac’s stock price rose close to 2% Friday, and nearly 10% this week. With this week’s gains, shares have climbed about 20% for the year so far.
Hurricanes Boost Generac’s Outlook
In July, Generac had raised its full-year 2024 net sales guidance “[a]s a result of recent power outage activity, which includes the impact of major outage event Hurricane Beryl.” Generac shares rose 12% during the nearly two weeks of Hurricane Beryl’s impact.
“With only approximately 6% penetration of the addressable market of homes in the U.S., we believe there are significant opportunities to further penetrate the residential standby generator market as the clear leader in this category,” Jagdfeld said.
Read the original article on Investopedia.
Read the full article here
