Generac: Lagging Among Industrials, Banking On AI Demand
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Mike Zaccardi, CFA, CMT8.66K FollowersFollow5ShareSavePlay(8min)Comment(1)SummaryGenerac maintains a "Buy" rating despite recent underperformance and a disappointing Q3, with valuation now appearing attractive.GNRC’s growth hinges on accelerating data center demand, with management targeting $300 million in data center revenue in 2026 and $500 million+ in 2027.Residential generator demand remains weak, but C&I product sales rose 9%, and the data center backlog doubled sequentially to $300 million+.Technical analysis shows GNRC in a trading range, with support near $138 and resistance at $200–$203; momentum indicators warrant close monitoring. J. Michael Jones/iStock Editorial via Getty Images Generac (GNRC) has lagged the SPDR Industrials Sector ETF (XLI) so far this year. In the YTD performance chart below, I plot GNRC, XLI, the SPDR S&P 500 ETF (SPY), and the equal-weight Consumer Discretionary fund (RSPD). Generac has aThis article was written byMike Zaccardi, CFA, CMT8.66K FollowersFollowFreelance Financial Writer | Investments | Markets | Personal Finance | RetirementI create written content used in various formats including articles, blogs, emails, and social media for financial advisors and investment firms in a cost-efficient way. My passion is putting a narrative to financial data. Working with teams that include senior editors, investment strategists, marketing managers, data analysts, and executives, I contribute ideas to help make content relevant, accessible, and measurable. Having expertise in thematic investing, market events, client education, and compelling investment outlooks, I relate to everyday investors in a pithy way. I enjoy analyzing stock market sectors, ETFs, economic data, and broad market conditions, then producing snackable content for various audiences. Macro drivers of asset classes such as stocks, bonds, commodities, currencies, and crypto excite me. My thing is communicating finance with an educational and creative style. I also believe in producing evidence-based narratives using empirical data to drive home points. Charts are one of the many tools I leverage to tell a story in a simple but engaging way. I focus on SEO and specific style guides when appropriate.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.