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With a market cap of $7.5 billion, Generac Holdings Inc. (GNRC) is a leading global manufacturer of power generation equipment, energy storage systems, and other power products for residential, commercial, and industrial applications. It designs, manufactures, and distributes a wide range of energy technology solutions, including standby generators, portable power equipment, and smart home energy management devices. 

Companies valued at less than $10 billion are generally considered “mid-cap” stocks, and Generac Holdings fits this criterion perfectly. With an extensive distribution network, the Waukesha, Wisconsin-based company serves customers through independent dealers, industrial distributors, retailers, e-commerce partners, and solar installers worldwide.

The generator maker saw a 35.6% decline from its 52-week high of $195.94. Shares of Generac Holdings have dropped 19.7% over the past three months, a steeper decline than the broader S&P 500 Index’s ($SPX) 4.4% dip over the same time frame. 

In the longer term, GNRC stock is down 22.1% over the past six months, a more pronounced decline than SPX’s 1.8% dip. Moreover, shares of Generac Holdings have dipped 1.6% over the past 52 weeks, lagging behind the 7.7% return of the SPX over the same time frame.

GNRC has fallen below its 200-day moving average since late January.

Shares of GNRC climbed 7.6% on Feb. 12 due to strong Q4 2024 results and an optimistic 2025 outlook. The company reported adjusted EPS of $2.80, surpassing Wall Street estimates, while net sales grew 16% year-over-year to $1.2 billion, meeting analyst expectations. Gross profit margin improved significantly to 40.6%, driven by a favorable sales mix and lower input costs. Additionally, Generac’s 2025 guidance of 3% - 7% net sales growth and an adjusted EBITDA margin forecast of 18% - 19% reinforced investor confidence, fueling the stock rally.

GNRC has outperformed its rival, Eaton Corporation plc (ETN), which has decreased 12.3% over the past 52 weeks. However, over the past six months, Eaton has dropped 15.9%, a less pronounced decline than GNRC.

Despite Generac Holdings’ weak performance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 26 analysts covering it, and as of this writing, GNRC is trading below the mean price target of $173.91.