With Generac Stock Surging, Have You Considered The Downside?
Generac (GNRC) stock is up 40.4% in 21 trading days. The rally reflects renewed optimism around its AI data center and C&I growth, but big moves like this often invite a tougher question: is the stock truly resilient when markets reverse?
Before judging its downturn reslience, let’s look at where Generac stands today.
- Size: Generac is a $13 Bil company with $4.4 Bil in revenue currently trading at $227.47.
- Fundamentals: Last 12 month revenue growth of 5.5% and operating margin of 11.4%.
- Liquidity: Has Debt to Equity ratio of 0.12 and Cash to Assets ratio of 0.05
- Valuation: Generac stock is currently trading at P/E multiple of 42.7 and P/EBIT multiple of 29.8
- Has returned (median) -5.2% within a year following sharp dips since 2010. See GNRC Dip Buy Analysis.
These metrics point to a Weak operational performance, alongside High valuation – making the stock Unattractive. For details, see Buy or Sell GNRC Stock
That brings us to the key consideration for investors chasing this rally: how resilient is GNRC stock if markets turn south? This is where our downturn resilience framework comes in. Suppose GNRC stock falls 20-30% to $159 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- GNRC stock fell 83.7% from a high of $505.80 on 1 November 2021 to $82.20 on 27 October 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $233.46 on 17 February 2026 , and currently trades at $227.47
| GNRC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -83.7% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- GNRC stock fell 33.1% from a high of $118.08 on 4 March 2020 to $79.01 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 27 May 2020
| GNRC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -33.1% | -33.9% |
| Time to Full Recovery | 65 days | 148 days |
2018 Correction
- GNRC stock fell 23.4% from a high of $59.44 on 11 September 2018 to $45.53 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 3 May 2019
| GNRC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -23.4% | -19.8% |
| Time to Full Recovery | 130 days | 120 days |
Feeling jittery about GNRC stock? Consider portfolio approach.
The ‘Crisis-Ready’ Asset Allocation Model
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