A Forward-Looking Play on Extreme Weather in Texas, Other States
If you’re looking for investment opportunities that will arise due to the extreme weather we’re seeing in parts of the country, there’s a key way to play it: home generator stocks.
The awful situation in Texas, with big swaths of the power grid knocked out, has generators flying off the shelves. They can’t keep them in stock.
The home standby generator market was already growing around 6% to 8% a year, so it doubles somewhere between every eight to 11 or so years. It’s not a rocket ship by any stretch, but it’s a nice, steady market.
These generators can cost $3,000 to $15,000 or so. Once you buy one, it’s like any sort of asset you own — like a car. You’ll pay to take care of it and keep it in good, working order. And because of the way home generators work, the companies selling them also get in on the repairs and parts as they age.
All that adds up to nice profits for companies in this market.
Home Generator Stocks: Big Names, 1 Pure Play — and 1 To Watch
WealthPress’ Jeff Yastine
There are a lot of well-known names like Yamaha, Kohler, Caterpillar, Hyundai and Honda in this industry, but there’s only one pure play — Generac Holdings Inc. (NYSE: GNRC).
It’s already at all-time highs — about $350 a share — after a huge run up the past year, so it will cost you a premium. Instead, I have a better idea in a stock that’s worth watching until it shows us it’s likely ready to move higher long-term.
A global provider of prime, backup and solar hybrid DC power, this company is a new entrant in this space, which could turbocharge its earnings potential.
So check out my short video and let’s talk about that play and home generator stocks. Then leave your questions and share your thoughts in the comments.
And as always, send your investing questions to jeff@yastine.com. Be sure to subscribe to my YouTube channel. You can also follow me on Twitter and Facebook.
P.S. Only Trade During Wall Street’s Weakest Hour
One former hedge fund trader is pulling back the curtain on a new trading method that only requires your attention in the stock market right before it closes.
You see, from the time the market opens until about 3 p.m. EST, Wall Street has the upper hand. But once 3 o’clock rolls around, the big funds on Wall Street start bleeding cash… which sends certain stocks crashing lower.
Take advantage of these cash bleeds during Wall Street’s weakest hour, and you can make huge returns the next morning when the market opens again.