There's always a trade.
As we've mentioned over the years GNRC is one of those stocks plugged into the algos so the computers don't even have to think beyond "If the initial conditions are X. the course of action is Y" Here's an introduction from last year:
Generac, THE Go-To Natural Disaster Stock Reports Earnings, Shares Crumble (GNRC)Come hell-or-high-water (also hurricanes, tornadoes, blizzards, earthquakes etc.) Generac is the stock that risk managers and speculators think of first. So, with no landfalling hurricanes (yet) and tornadoes almost exactly on the 50th percentile line*, sales declined....
And from Investor's Business Daily, October 7:
Generac (GNRC) is Monday's IBD Stock Of The Day, as Hurricane Milton grows into a Category 5 storm, heading for Florida just days after Hurricane Helene ripped through the Southeastern U.S. Generac jumped into a buy zone Monday following an upgrade and is flashing some bullish signals.
OTR Global upgraded the Waukesha, Wis.-based Generac with a positive rating, up from mixed, on Monday. The firm cited research that shows that third-quarter U.S. residential sales of standby generators increased on a dollar basis vs. a year ago. The 2024 outlook is for continued growth.
Meanwhile, Hurricane Milton rapidly intensified on Monday. The National Hurricane Center expects Milton to weaken before hitting Florida's west coast on Tuesday or Wednesday. Hurricane Milton was a Category 1 storm late Sunday but has quickly strengthened in recent hours
Reading The Generac Stock Chart
Generac stock tends to swing higher during natural disasters as people and agencies rush to purchase generators. It surged 7.8% to 172.59 during Monday's stock market action. That put shares in a buy zone above a 169.57 buy point, according to MarketSurge charts.
The breakout received affirmation from the stock's relative strength line, which broke to a 52-week high alongside the move past the buy point. This is a bullish corroboration....
....MORE
The stock is up $13.77 (+8.60%) at $173.95 after earlier trading to a new 52-week high two year high of $174.35.
Our most recent post on GNRC was August 2, 2024's "UPDATED—With Six Weeks To Peak Hurricane Day (Sept. 10) A Chance To Own The Risk Manager's Go To Disaster Equity, On Sale (GNRC)" with the stock at $141.0.
On the short side reinsurer RenRe is getting hit for an almost equal but opposite -8.58% (-23.99) to $255.70. If I remember to post we will have an explanation for why the insurers/reinsurers get hit when the fear is wind damage versus when it is flooding damage.
