Generac Holdings (GNRC) shares soared 8.5% in the last trading session to close at $173.82. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.7% gain over the past four weeks.

The increase in share price can be attributed to the arrival of Hurricane Milton in the Southeast United States. When hurricanes or other natural disasters cause power outages, backup generators become essential for homeowners, businesses, and emergency services. Generac's products often witness increasing demand during these times. As a result, the stock market tends to respond by appreciating Generac's stock price, reflecting the company's pivotal role in providing backup power solutions during emergencies.

This generator maker is expected to post quarterly earnings of $1.96 per share in its upcoming report, which represents a year-over-year change of +19.5%. Revenues are expected to be $1.16 billion, up 7.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Generac Holdings, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on GNRC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Generac Holdings is a member of the Zacks Electronics - Power Generation industry. One other stock in the same industry, Babcock & Wilcow Enterprises (BW), finished the last trading session 13.8% higher at $2.48. BW has returned 91.2% over the past month.

For Babcock & Wilcox , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.02. This represents a change of +111.1% from what the company reported a year ago. Babcock & Wilcox currently has a Zacks Rank of #4 (Sell).

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Generac Holdings Inc. (GNRC) : Free Stock Analysis Report

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