© Provided by The Motley Fool
Why Generac Holdings Stock Topped the Market on Thursday
What happened
The stock market was quite frothy on Thursday, and Generac Holdings (NYSE: GNRC) was one of the stocks pushing it higher. The power-generating technology company’s stock price rose by 3.5%, well outpacing the 1.5% rise of the bellwether S&P 500 index. The beaten-down stock is continuing its recent comeback.
Load Error
So what
Momentum is clearly on Generac’s side. Thursday morning before the market open, Credit Suisse analyst Maheep Mandloi cut his price target on the stock to $159 per share from the previous level of $165. That didn’t keep investors away from the shares at all. In fact, during the day, they dipped only slightly and briefly below their Wednesday price.
Investor optimism is supporting Generac’s stock, bolstered by some encouraging news in recent days from the company. It unveiled a new product that’s well-timed to jump on the snowballing popularity of electric vehicles (EVs) — a home charging system.
It sounds quite promising, too. According to its maker, the Generac EV charger can provide a full charge for certain cars in four to six hours, a quick little sprint in time, compared to other charging solutions. The appeal of such a product in a growing market is obvious.
Now what
Another dynamic at play here is the low base of Generac’s shares as they tumbled into 2023. The stock was one of the worst-performing titles in its sector last year. That was basically a retrenchment, as Generac — with its robust home generator business — was a popular title during the stay-at-home period that was the thick of the coronavirus pandemic.
SPONSORED:
10 stocks we like better than Generac
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Generac wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
*Stock Advisor returns as of January 9, 2023
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.