Generac Holdings, Inc. (NASDAQ: GNRC) shares traded higher Monday as Hurricane Milton barrels toward the Florida coast.
The Details: According to a report from The Weather Channel, Hurricane Milton has intensified to a Category 5 storm, and hurricane watches have been posted along Florida's Gulf Coast with landfall expected on Wednesday. Generac shares gained nearly 9% in Monday's session as investors anticipate extensive power outages to be caused by the storm.
KeyBanc analysts released an alert on Generac's stock last week after Hurricane Helene left 4.7 million people without power at the peak of outages. KeyBanc pointed to the back-up power supply company as positioned to benefit from the most active quarter for power outages since 2018.
According to data from Benzinga Pro, Generac shares have climbed 24.5% over the month and marked a new 52-week high of $175.69 on Monday.
GNRC Stock Prediction 2024
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Generac Holdings, an investor could assess a stock's long-term prospects using a moving average and trend line.
If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line.
For Generac Holdings, the 200-day moving average sits at $135.37, according to Benzinga Pro, below the current price of $173.98. For more on charts and trend lines, see a description here.
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade later if conditions remain stable.
GNRC Price Action: According to Benzinga Pro, Generac shares ended Monday's session up 8.52% at $173.82.