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Generac Holdings Inc. (GNRC), headquartered in Waukesha, Wisconsin, designs, produces, and markets various energy technology products and solutions. Valued at $8.7 billion by market cap, the company offers standby generators, smart home energy solutions, portable generators, outdoor power equipment, energy storage systems, and cleaner-burning natural gas-fueled generators, serving both residential and commercial sectors.
Shares of this backup power giant have underperformed the broader market over the past year. GNRC has gained 19% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.3%. In 2025, GNRC stock is down 5.3%, compared to SPX’s 4% rise on a YTD basis.
Narrowing the focus, GNRC’s outperformance is apparent compared to the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained about 16.7% over the past year. However, the ETF’s 4.4% gains on a YTD basis outshine the stock’s losses over the same time frame.
GNRC's underperformance can be attributed to the decline in core sales, driven by reduced domestic shipments in the telecom, national equipment rental, and beyond standby applications segments, along with unfavorable market conditions in Europe.
On Feb. 12, GNRC shares closed up more than 7% after reporting its Q4 results. Its adjusted EPS of $2.80 surpassed Wall Street expectations of $2.50. The company’s revenue was $1.2 billion, matching Wall Street forecasts.
For fiscal 2025, ending in December, analysts expect GNRC’s EPS to grow 10.6% to $8.04 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 25 analysts covering GNRC stock, the consensus is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, one “Moderate Buy,” nine “Holds,” one “Moderate Sell,” and two “Strong Sells.”
The configuration has been fairly stable over the past three months.
On Feb. 18, Barclays PLC (BCS) analyst Christine Cho CFA maintained a “Hold” rating on GNRC with a price target of $189, implying a potential upside of 28.7% from current levels.
The mean price target of $174.59 represents an 18.9% premium to GNRC’s current price levels. The Street-high price target of $210 suggests an ambitious upside potential of 43%.
