Why Generac Stock Was Soaring This Week

Key Points

• There's nothing like a crushing bottom-line beat to electrify a stock.

• The generator specialist also posted some impressive growth rates in its second quarter.

• 10 stocks we like better than Generac ›

Veteran generator manufacturer Generac Holdings' (NYSE: GNRC) stock was full of energy for investors over the past few days. On the back of a solid quarterly earnings report and subsequent analyst price target hikes, the company's share price was up by a robust 24% week to date as of early Friday morning, according to data compiled by S&P Global Market Intelligence.

A big leap in profitability, accompanied by a double beat

Generac's second-quarter results, published before market open on Wednesday, revealed that the company's net sales grew by 6% year over year to a bit over $1.06 billion. The company's two customer segments -- residential, and commercial and industrial -- grew at roughly similar rates over that stretch of time.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

Non-GAAP (adjusted) net income saw a more dramatic improvement, increasing by more than 18% to $97 million, or $1.65 per share.

This meant a double beat for Generac, as the consensus analyst estimates for sales and adjusted net profit were $1.03 billion and $1.35 per share, respectively. Compounding that, management boosted the bottom ends of its full-year growth projections for both revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).

A clutch of price target hikes

Analysts tracking Generac stock were rather impressed by this performance, with several going so far as to raise their price targets on the stock. One of the more aggressive boosts came from Cannacord Genuity's George Gianarikas, who cranked his fair value assessment to $250 per share from his previous $180. Almost needless to say, Gianarikas maintained his buy recommendation on the stock.

Should you invest $1,000 in Generac right now?

Before you buy stock in Generac, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Generac wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $638,629!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,098,838!*

Now, it’s worth noting Stock Advisor’s total average return is 1,049% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.