Generac: A Significantly Undervalued Mid-Cap Stock For 2024

Dec. 25, 2023 10:05 PM ETGenerac Holdings Inc. (GNRC) StockGNRC53 Comments

Summary

  • Mid-cap stocks have underperformed compared to the S&P 500, with 40% of Russell 2000 companies having negative earnings.
  • Small-cap stocks face challenges due to economic shifts, increased competition from mega-cap companies, and declining profitability.
  • Despite the challenges, there are opportunities for discerning stock pickers in attractively valued small-cap stocks like Generac Holdings, which benefits from megatrends in grid evolution, infrastructure investment, and the need for backup power.
  • Looking for a helping hand in the market? Members of iREIT® on Alpha get exclusive ideas and guidance to navigate any climate. Learn More »
Generac Industrial generator

J. Michael Jones

Introduction

Mid-cap stocks have not been the best place to be.

Over the past ten years, the iShares Russell 2000 ETF (IWM) has returned roughly 100%, including dividends. During this period, the S&P 500 has returned more than twice as much.

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This article was written by

42.89K Followers

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

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.

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