Important points
Generac stock rose this week as Hurricane Helen made landfall in the southeastern United States. The company produces home generators and other emergency power solutions. Past storms like Hurricane Beryl have similarly boosted the company’s stock price.
Generac Holdings (GNRC), a maker of home generators and other emergency power solutions, saw its stock rise after Hurricane Helen made landfall in the southeastern United States.
“If people want to back up their homes or businesses or do something to produce their own electricity,” Generac CEO Aaron Jagdfeld said in an interview with Bloomberg last week. , we see them trying to take matters into their own hands.”
Hurricane Helen made landfall in Florida on Thursday as a Category 4 storm, before weakening and moving into Georgia and South Carolina as a tropical storm. More than 4 million homes and businesses were without power Friday morning in the southeastern United States, according to the tracking site poweroutage.us.
Generac stock rose nearly 2% on Friday and is up nearly 10% this week. This week’s rally has pushed the stock up about 20% since the beginning of the year.
Hurricanes Boost Generac’s Outlook
In July, Generac raised its full-year 2024 net sales outlook “as a result of recent power outage activity, including the impact of Hurricane Beryl, a major power outage event.” Generac stock rose 12% in the roughly two weeks following Hurricane Beryl.
“While penetration in the U.S. residential market is only about 6%, we believe there is a significant opportunity to further penetrate the residential standby generator market as the clear leader in this category,” Jachtfeld said.
