Generac Holdings GNRC shares ended the last trading session 12.5% higher at $114.65. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 22.4% loss over the past four weeks.

The increase in share price can attributed to President Trump’s announcement of a 90-day pause on reciprocal tariffs, barring China. This led to skyrocketing indices and subsequent increases for most stocks including Generac. 

Apart from that, the company specific factors are also driving the stock price performance. Momentum in Residential Products sales bodes well for GNRC. The company’s efforts to boost production to meet higher demand for home standby and portable generators amid increasing power outage activity is the primary tailwind. For 2025, Residential Product sales are expected to be in the mid-to-high single-digit range, driven by shipments of home standby generators and residential energy technology solutions.

The proliferation of artificial intelligence applications has caused a spurt in the construction of energy-intensive data centers. This is likely to spur demand for power consumption or backup power in the near future, which in turn is expected to put pressure on the aging power grids. Generac's backup power portfolio is well suited to provide a resilient power supply as demand for electricity continues to surge. 

The strategic acquisition approach has played a pivotal part in developing Generac’s business. Acquisitions aid in obtaining synergies, leading to cost reduction and enhanced operational efficiency through the integration of resources. Generac's acquisitions in 2024 were strategically aligned to enhance its C&I segment, specifically focusing on Battery Energy Storage Systems (“BESS”) and microgrid controller technologies. 

This generator maker is expected to post quarterly earnings of $0.97 per share in its upcoming report, which represents a year-over-year change of +10.2%. Revenues are expected to be $918.6 million, up 3.3% 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 3.2% 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 part of the Zacks Manufacturing - General Industrial industry. Illinois Tool Works ITW, another stock in the same industry, closed the last trading session 7.5% higher at $234.87. ITW has returned -14.3% in the past month.

Illinois Tool Works' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.33. Compared to the company's year-ago EPS, this represents a change of -4.5%. Illinois Tool Works currently boasts a Zacks Rank of #3 (Hold).

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