On Thursday, Generac Holdings (GNRC) stock saw a significant upgrade in its Relative Strength (RS) Rating from 79 to 83. This proprietary rating by IBD indicates market leadership and compares a stock’s price behavior over the past 52 weeks to all other stocks in the database. Stocks with an RS Rating of at least 80 often go on to make significant gains.
However, despite this recent upgrade, Generac Holdings stock has fallen below its previous entry point of 133.15 from a cup with handle formation. If a stock breaks out and then falls 7% or more below the entry point, it is considered a failed breakout, and waiting for a new base to form is advisable. Additionally, the most recent pattern is a later-stage base, which increases the risk associated with establishing a new position or adding shares to an existing one.
Despite these challenges, Generac Holdings has shown impressive financial performance over the past few quarters. The company has reported three quarters of accelerating earnings growth and rising revenue gains during this period. In fact, within the Electrical Power/Equipment industry group, Generac Holdings stock holds the No.13 rank among its peers. Other highly rated stocks in this industry include nVent Electric (NVT), Vertiv Holdings (VRT), and Gates Industrial (GTES).
Given its recent RS Rating upgrade and strong financial performance indicators, Generac Holdings may be worth keeping an eye on for investors looking for top stocks to buy and watch. MarketSurge’s tools such as IBD Live, SwingTrader, and growth stock research tools can provide valuable insights for individual investors looking to capitalize on short-term trends and identify top stocks in the market.