Generac Holdings Inc. (GNRC) is a leading player in backup power, designing and manufacturing equipment and solutions for homes, businesses, and industries. Its wide range includes generators, energy storage systems, and digital energy management tools. Generac operates a vertically integrated structure that covers R&D, manufacturing, and global distribution. The company’s main office is situated in Waukesha, Wisconsin. Generac currently has a market capitalization of $8.57 billion. 

Generac’s stock has been turbulent on Wall Street. A relatively milder weather season, without significant events that drive demand for backup generators, has weighed on the stock’s performance. Over the past 52 weeks, the stock has declined by 20.4%, while it is down 23.4% over the past three months. Generac’s shares had reached a 52-week high of $203.25 in August, but are down 28.2% from that level. 

On the other hand, the broader S&P 500 Index ($SPX) has gained 11% and 3.7% over the same periods, respectively, indicating that the stock has underperformed the broader market. The same trend can be observed when comparing the stock's performance with that of the industrial sector. The Industrial Select Sector SPDR Fund (XLI) has gained 6.4% over the past 52 weeks but declined marginally over the past three months.

On Oct. 29, Generac reported its third-quarter results for fiscal 2025 that missed analyst estimates. The company’s net sales decreased 5% year-over-year (YOY) to $1.11 billion, below the $1.20 billion that Wall Street analysts had expected. The weaker-than-expected result was likely due to a power outage environment below the baseline average. The bottom line also declined, with adjusted EPS declining by 18.7% from the prior year’s period to $1.83, missing the $2.25 figure that Wall Street analysts had expected. 

For the fiscal year 2025, which ends in December 2025, Wall Street analysts expect Generac’s EPS to decline 10.9% YOY to $6.48 on a diluted basis. However, EPS is expected to increase 25.6% annually to $8.14 in fiscal 2026. The company has a solid history of surpassing consensus estimates, topping them in three of the four trailing quarters.

Among the 21 Wall Street analysts covering Generac’s stock, the consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” nine “Holds,” and one “Strong Sell.” The ratings configuration is less bullish than it was two months ago, with the addition of one “Strong Sell” rating.

This month, analysts at Citigroup maintained a “Neutral” rating on Generac’s stock. Last month, UBS analyst Jon Windham maintained a “Buy” rating on the stock. However, he also lowered the price target from $220 to $215. 

Generac’s mean price target of $207.94 indicates a 42.4% upside over current market prices. The Street-high price target of $240 implies a potential upside of 64.3%. 

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