Generac Holdings, Inc. (GNRC) shares experienced a significant jump on Monday as Hurricane Milton, rapidly strengthening into a Category 5 storm, aimed for Florida’s Gulf Coast. With landfall expected on Wednesday, investors anticipate extensive power outages across the region, driving up demand for Generac’s backup power systems. This potential surge in demand has led to a near 9% increase in Generac’s stock price during Monday’s trading session.
KeyBanc analysts previously highlighted Generac’s favorable position following Hurricane Helene, which left 4.7 million people without power at its peak. They emphasized that Generac, as a provider of backup power, is well-positioned to benefit from the most active quarter for power outages since 2018. This positive outlook is reflected in Generac’s stock performance, showing a 24.5% climb over the past month and reaching a new 52-week high of $175.69 on Monday.
While traditional valuation methods often rely on earnings growth and fundamental analysis, many traders employ technical analysis to predict stock price movements. One popular technical tool is trend lines, which help investors identify long-term trends and potential future stock price behavior. Generac’s 200-day moving average, currently at $135.37, sits below the stock’s current price of $173.98. The fact that Generac’s stock is trading above its moving average is generally considered a bullish indicator, suggesting a potential continuation of the upward trend.
Traders can use trend lines to make informed predictions about future stock price movement, assuming stable market conditions. Based on Generac’s current trajectory, investors can make educated guesses about potential price levels in the future. Generac shares finished Monday’s trading session at $173.82, representing an 8.52% increase. This surge in stock price highlights the market’s anticipation for Generac’s strong performance in the wake of Hurricane Milton.
