Generator stock Generac heads for best week since November amid heat wave

While the hurricane season continues and a repressive heat wave in the regions of the nation, investors Generation.

The spare generator manufacturer is on the road for the sixth flat earnings and best week since November 2024. This week increased by about 12%.

The high temperatures covered areas through the Central and Eastern USA since last weekend and caused power outages reported in New York, New Jersey and Illinois. Excessive heat warnings and recommendations are still valid for the Middle Atlantic, Ohio Valley and some parts of the Southeast that affect 130 million people. National Weather Service in question.

Beyond that, this Atlantic Hurricane season is expected to be above normal. According to the National Ocean and Atmospheric Administration. The agency is expected to be six to 10 hurricane. Three to five of them are expected to be “big hurricanes” with categories 3, 4 or 5.

This week, Tropical storm Andrea According to Accuweather, it was the first of the season, albeit briefly. The air service said he quickly returned to a tropical rain storm when the winds were decreased.

Heats and storms are already stressful and aging the aging power network – and is expected to get worse. The risk of power outages caused by hurricanes may jump 50% or more in some parts of the nation due to climate change, which can affect the future storm properties. According to the research Last year from the Pacific Northwest National Laboratory and Electric Power Research Institute.

Generac CEO Aaron Jagdfeld discussed the issue in October with Jim Cramer of CNBC. The crop of severe air and new data centers makes a coercion to the system.

“This has become a critical point of discussion,” Jagdfeld said, “Mad Money.” “This will just get worse.”

Bank of America estimates an electric load that grows at an annual growth rate of 2.5% between 2024-2035.

Among the other names to be watched Tran technologiesThis makes cooling systems for residential and enterprises, including data centers. According to Factset, the stock currently has an average standard of waiting by analysts.

Benefit stocks are expected to benefit from the increase in power demand. Bank of America said that he expects “important” tail winds for the energy sector in the second half and helps improve margins for names such as data center agreements. Constellation energy And Vistra.

Nevertheless, by performing better performance of the public services sector S&P 500 This year the bank is selective.

“We will choose to perform better performance in the second half of the laggard, which performs better than this sector,” Analyst Ross Fowler said.

Among the Opportunities He preferred Symptom– Northwest energy And Lowering energy.

– Adrian van Hauwermeiren from CNBC contributed to reporting.