Waukesha, Wisconsin-based Generac Holdings Inc. (GNRC) manufactures power generation equipment, energy storage systems and other power products, including portable, residential, commercial and industrial generators. With a market cap of $7.6 billion, Generac’s operations span various countries in the Americas, Asia and Europe.

Generac has significantly underperformed the broader market over the past year. GNRC stock has plunged 10.9% over the past 52 weeks and 16.8% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 12.5% gains over the past year and 1.4% uptick in 2025.

Narrowing the focus, Generac has also underperformed the Industrial Select Sector SPDR Fund’s (XLI) 15.1% surge over the past 52 weeks and 9.5% returns on a YTD basis.

Generac Holdings’ stock prices gained more than 1% after the release of its impressive Q1 results on Apr. 30. The increased number of power outages in 2024 has continued to drive growth for the company’s home standby generator, leading to robust growth in residential product sales. This led to Generac’s net sales growing 5.9% year-over-year to $942.1 million, surpassing the Street’s expectations by 2.5%. Furthermore, Generac has also experienced notable margin expansion, leading to its adjusted net income soaring 42.3% year-over-year to $75.4 million. Moreover, its adjusted EPS of $1.26 surpassed the consensus estimates by a staggering 27.3%.

Despite the solid Q1 performance, Generac has turned more uncertain about the company’s full-year performance due to the potential impact of tariffs and volatile government policies and macro environment. The company revised its net sales growth guidance from the previous range of 3% - 7% to 0% - 7% and its adjusted EBITDA margin from the prior range of 18% - 19% to 17% - 19%.

For the full FY 2025, ending in December, analysts expect GNRC to deliver a modest 1.5% year-over-year growth in adjusted EPS to $7.38. However, the company has a robust earnings surprise history. Generac has surpassed the Street’s bottom-line projections in each of the past four quarters by large margins.

The stock holds a consensus “Moderate Buy” rating overall. Of the 25 analysts covering the stock, opinions include 14 “Strong Buys,” one “Moderate Buy,” eight “Holds,” one “Moderate Sell,” and one “Strong Sell.”

This configuration is slightly more bullish than three months ago, when 12 analysts gave “Strong Buy” recommendations and two analysts gave “Strong Sell” suggestions.

On May 1, Canaccord Genuity analyst George Gianarikas reiterated a “Buy” rating on GNRC, but lowered the price target from $200 to $180.

GNRC’s mean price target of $151.86 represents a notable 17.8% premium to current price levels. Meanwhile, the street-high target of $205 suggests a massive 59% potential upside.