A Forward-Looking Play on the Extreme Weather in Texas, Other States
If you’re looking for some grand takeaway from the extreme weather devastating parts of the country, I’ve got a big one: Home generators are probably about to get much more popular.
The awful situation in Texas, with big swaths of the power grid knocked out, has generators flying off the shelves. They can’t keep them in stock.
The home standby generator market was already growing around 6% to 8% a year, so it doubles somewhere between every eight to 11 or so years. It’s not a rocket ship by any stretch, but it’s a nice, steady market.
These generators can cost anywhere from $3,000 to as much as $15,000. Once you buy one, it’s like any sort of asset you own — like a car. You’ll pay to take care of it and keep it in good, working order. And because of the way home generators work, the companies selling them also get in on the repairs and parts as they age.
And as WealthPress trader Jeff Yastine will tell you in today’s video, all that adds up to nice profits for companies in this market.
Home Generator Stocks: Big Names, 1 Pure Play — and 1 To Watch
There are a lot of well-known names like Yamaha, Kohler, Caterpillar, Hyundai and Honda in this industry, but there’s only one pure play — Generac Holdings Inc. (NYSE: GNRC).
It’s already at all-time highs — about $350 a share — after a huge run up the past year, so it will cost you a premium. Instead, Jeff has a better idea in a stock that’s worth watching until it shows us it’s likely ready to move higher long term.
A global provider of prime, backup and solar hybrid DC power, this company is a new entrant in this space, which could turbocharge its earnings potential.
So check out Jeff’s short video and let’s talk about that play and home generator stocks. Then leave your questions and share your thoughts in the comments.
And as always, you can send your investing questions to jeff@yastine.com. Be sure to subscribe to his YouTube channel. You can also follow Jeff on Twitter and Facebook.