UBS Calls Generac Stock a "Top Pick"

The majority of analysts in coverage rate the equity a "strong buy"

Deputy Editor
Jun 2, 2022 at 9:34 AM
facebook X logo linkedin

Energy technology concern Generac Holdings Inc. (NYSE:GNRC) is a "top pick," according to UBS. The brokerage firm noted strong growth prospects thanks to the company's clean energy business, going as far as saying that GNRC could see more than 80% upside. In response, the equity was last seen up 2.1% to trade at $249 before the bell.

UBS is joining an overwhelmingly bullish brokerage bunch. Specifically, 16 of the 17 analysts in coverage had a "strong buy" rating coming into today, and there's not a single "sell" on the books. Plus, the 12-month consensus target price of $386.65 is a 58.6% premium to the equity's current perch. 

Options traders have favored calls of late, indicating a similarly bullish penchant. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Generac stock's 50-day call/put volume ratio of 1.67 ranks higher than 70% of annual readings. This means long calls have been getting picked up at a quicker-than-usual pace in the last 10 weeks.

Echoing this, the security's Schaeffer's put/call open interest ratio (SOIR) sits higher than just 14% of readings from the past year. In other words, short-term options traders have rarely been more call-biased. 

These traders are in luck, as the stock's Schaeffer's Volatility Scorecard (SVS) stands at a high 88 out of 100. This indicates GNRC has exceeded options traders' volatility expectations over the past year.

Generac stock is down 30.7% year-to-date, thanks to the recent anxieties surrounding the energy sector in the wake of Russia's invasion of Ukraine. While the 50-day moving average is still set to keep a lid on the shares, the 40-day trendline has emerged during the past few sessions as support. Longer term, GNRC is down 24.2% in the last 12 months.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI