Generac Holdings (GNRC) experienced a breakout earlier, but has now fallen below the previous entry point of 133.15 from the cup with a handle formation. If a stock breaks 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 recommended. However, despite this setback, Generac Holdings’ latest pattern is still considered a late-stage base, which increases the risk associated with establishing a new position or adding shares to an existing one.
The company has posted three quarters of accelerated earnings and revenue growth over the same period, and is expected to report its next quarterly numbers around May 1. Within the Power/Equipment industry group, Generac Holdings ranks 13th among its peers. Other highly rated stocks in the industrial group include nVent Electric ( NVT ), Vertiv Holdings ( VRT ), and Gates Industrial ( GTES ).
Despite these challenges, Generac Holdings’ recent RS rating upgrade and strong financial performance metrics make it a potential stock to watch for individual investors looking to take advantage of short-term trends and identify the best stocks. MarketSurge’s tools like IBD Live, SwingTrader and growth stock research tools can provide valuable insights for investors looking to stay ahead of market trends.