GNRC’s 6.72% Jump Doesn’t Change My View

I see the Nov. 11 jump of 6.72% to $194.00 as understandable against improving results, but not enough to change my decision. Q3 revenue rose 16.2% and net income 65.1% year over year, while free cash flow increased 36.5% to $132M—reassuring evidence that earnings growth is producing cash. Estimates also imply a sharp recovery: 2026 EPS is $9.898 and 2027 EPS $13.975, putting the stock at 19.6x and 13.9x those forecasts versus 38.3x trailing earnings. However, EPS has swung from a 50.1% decline in 2025 to estimated growth of 268.0% in 2026, and the stock’s beta is 1.85. Generac is not a predictable concession business. I have no position, and this one-session move does not justify buying into that volatility.