Generac (NYSE:GNRC) is seeing its stock price soar today by more than 8.54% as the hurricane Milton strikes. Hurricane Milton is a Category 5 tropical cyclone in the Gulf of Mexico that is approaching Florida. When hurricane strikes, or any natural disasters happen and the electricity goes out, the backup generator becomes a popular item. And the market welcomes this unfortunate event by appreciating the stock price of Generac.
Catastrophe is an opportunity of raising sales for a prime mover that produces electricity in residential, light commercial and industrial markets. But people need to understand that catastrophe also creates limitations for the supply chain. The sales might take place a little slower during disasters.
About the potential, Generac’s product produces clean energy that is provided by gensets aligned with market trends towards grid modernization and decentralization. Generac is a market leader in the generator business, covering 70% market share of the home standby generator market. And as all dominant players that reach maturity in business, the growth is not to be expected as high as in the growing stage in early days of market penetration.
Don’t just read the latest news – make informed investment decisions. Visit GuruFocus today and dive deeper into Generac‘s performance with Charts & Guru Insights.
This article first appeared on GuruFocus.