GNRC | Long | Post-Correction Recovery| (June 23, 2025)

GNRC | Direction: Long | Key Reason: Post-Correction Recovery & Strong Fundamentals | (June 23, 2025)

1️⃣ Insight Summary
Generac has pulled back significantly, presenting a potential long setup. With strong recent earnings and solid revenue drivers, a bounce targeting extended levels looks appealing.

2️⃣ Trade Parameters
Bias: Long
Entry: Current range ($200–$210) after correction
Stop Loss: Just below recent support ($190)
Take Profit 1: $231 (near-term upside target)
Take Profit 2: $275 (mid-range resistance and earnings catalyst zone)

3️⃣ Key Notes
✅ Revenue & Profitability: TTM revenue ~$4.95 B with net income around $566 M
✅ Valuation Profile: Market cap (~$3.6 B) is below annual revenue, suggesting deep reset potential
✅ Established Provider: Founded 1959, headquartered in Wisconsin—leader in energy technology solutions including generators, backup power, and parts
❌ Debt & Cash Flow: Substantial debt ($1 B), but matched by strong cash generation ($500 M), making it manageable
✅ Technical & Sentiment Landscape: Bullish analysts have maintained positive targets ($142 consensus), and current price dip may offer a value entry
⚠️ Catalysts to Watch: Leadership/legal scrutiny (class-action request filed recently) could create volatility

4️⃣ Follow‑up Note
Watch earnings and legal developments closely. A decisive bounce above $231 would set the stage for an extended run toward $275. Ahold above that would validate longer-term strength.

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Disclaimer: This is not financial advice. Always conduct your own research. This content may include enhancements made using AI.