For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Generac Holdings (GNRC) ten years ago? It may not have been easy to hold on to GNRC for all that time, but if you did, how much would your investment be worth today?
With that in mind, let's take a look at Generac Holdings' main business drivers.
Headquartered in Waukesha, WI, and founded in 1959, Generac Holdings Inc. is a leading manufacturer of power generation equipment, energy storage systems and other power products including portable, residential, commercial and industrial generators. In addition, the company manufactures light towers, which provide temporary lighting solutions for various end markets, and commercial and industrial mobile heaters and pumps that are used in the oil & gas, construction and other industrial markets. Its product portfolio also includes engines, alternators, transfer switches, mobile heaters, power washers, water pumps, energy monitoring devices and other components of outdoor power equipment for residential and commercial use. The company has a wide distribution network spanning independent residential dealers, industrial distributors and dealers, national and regional retailers, e-commerce partners, wholesalers, equipment rental companies, equipment distributors, and solar installers. It also boasts a direct sales channel to various individual customers. Generac broadly classifies its products into three categories depending on the end user types, namely Residential, Commercial & Industrial (C&I), and Other products and services. The Residential business includes automatic standby generators that run on natural gas, liquid propane, diesel, air-cooled engine generators for emergency backup in small to medium-sized homes, and liquid-cooled engine generators for larger homes and small businesses. It also provides remote monitoring system for home standby generators called Mobile Link, offering Wi-Fi-enabled feature to conveniently check the status of generator online, while receiving maintenance and service alerts. The C&I generators that run on diesel, natural gas, liquid propane and Bi-Fuel cater to small and mid-sized businesses. The Other products and services category primarily comprise aftermarket service parts and product accessories. Generac has two operating segments — Domestic and International. The Domestic segment (84.6% of first-quarter 2022 revenues) includes the legacy Generac business and operations that are based in the United States and Canada. The International segment (15.4%) includes the Latin American export operations, and other business units that generate revenues from outside the United States and Canada.
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Generac Holdings ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in July 2012 would be worth $11,026.55, or a 1,002.65% gain, as of July 21, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 190.60% and the price of gold went up 2.84% over the same time frame.
Going forward, analysts are expecting more upside for GNRC.
Generac’s performance is being driven by robust demand for Residential and Commercial & Industrial (C&I) products as well as rebound in end-market activity across all regions. The company is witnessing strong momentum for its home standby generators and PWRcell energy storage systems solutions. Continued capacity-expansion efforts and strategic acquisitions act as tailwinds. Significant changes in the energy landscape, aging power infrastructure and deployment of 5G technology are likely to spur growth opportunities for General.However, higher input costs related to global supply chain disruptions are likely to remain a concern in the near term. The company faces stiff competition from large diversified industrial firms and smaller generator manufacturers. Shares have underperformed the industry in the year-to-date period
The stock has jumped 17.23% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2022; the consensus estimate has moved up as well. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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