Generac: Room For Expansion In The U.S. Residential Market

Davide Zappa
740 Followers
(22min)

Summary

  • Generac Holdings stocks are trading at fair market price.
  • The revenue decline in 2023 seems attributed to short-term headwinds, not structural issues.
  • Generac has the potential to continue expanding its market share in the foreseeable future as the company deepens its penetration in the domestic motor and generator market.
  • Generac’s risk-reward profile has the potential to generate a positive excess return (alpha +0.2%) above its expected required rate of return.

Generac Industrial generator

J. Michael Jones

Executive Summary

Generac Holdings (NYSE:GNRC) stocks are currently trading around their fair market price.

Despite a sharp decline in revenue growth rates and profitability registered in 2023, we believe the causes must be attributed to short-term headwinds

This article was written by

740 Followers
Davide Zappa uses a fundamental approach based on industry-level data to value growth stocks. Davide is also the founder of BlackNote Investment, an equity research platform providing free access to industry-level data such as industry growth rates, equity risk premiums, country growth rates, industry beta, as well as detailed industry reports, to support retail investors and professional analysts in their daily activities.

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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