The last time we mentioned Generac Holdings (GNRC), it traded at $126.32.

Today, it’s up slightly.  But we believe it could still take off – especially with higher temperatures, potential blackouts and hurricane season.

With regards to the heat wave, “A massive heat dome enveloping much of the central and eastern U.S. this week will lead to levels of heat and humidity not seen in June in many years, warn AccuWeather meteorologists. High temperatures approaching and even exceeding 100 degrees are expected over more than three dozen states stretching from the Plains to New England through at least the middle of the week, challenging many long-standing records.”

So, please stay as cool as possible.

Unfortunately, along with the heat, we could also see blackouts across the country. All of which could fuel upside in generator stocks like Generac Holdings (GNRC) – a $7.42 billion manufacturer of backup power generation products.

We also have to consider that GNRC is a beneficiary of hurricane season – which can lead to substantial power issues. And from what we’re hearing from the National Oceanic and Atmospheric Administration (NOAA), an above-normal hurricane season is expected. 

In fact, “The agency is forecasting a range of 13 to 19 total named storms (winds of 39 mph or higher). Of those, 6-10 are forecast to become hurricanes (winds of 74 mph or higher), including 3-5 major hurricanes (category 3, 4 or 5; with winds of 111 mph or higher). NOAA has a 70% confidence in these ranges,” they added.

All of which could easily fuel upside in generator stocks like Generac Holdings.

Sincerely,

Ian Cooper

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