53.52 +0.33 (+0.62%) Sell

Joy for GNRC investors as it marginally outperforms

13 min read

GENERAC HOLDINGS INC. outperformed the broader market on Thursday. It increased by +0.62% to close at 53.52. It is currently trading +23% above it's 52 week low of 43.34 and is down only -9% from it's 52 week high.

[Themes containing GNRC]

GNRC is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for GNRC's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -7.96%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to GNRC.


GNRC has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 5 Jan, 2016 to 21 Nov, 2018. Over the last 2 years 11 months and 9 days, GNRC outperformed the SP500 index on 55% days.

During the last three months GNRC delivered profits on 54% days. However, it still managed to end this period in a loss. It's best return during this period (of +5.89%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -6.74%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 3 Oct, 2018 and went on till 10 Oct, 2018. This bullish trend returned +3.3% to investors.

During the last year GNRC had 9 profitable months and 3 loss making months. GNRC returned profits in more months than SP500 index. GNRC significantly outperformed SP500 index in Nov 2018, when it returned +12.2% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. GNRC had a longer winning streak of profitable months than SP500 index. It went up in 7 straight months (from Mar 2018 to Sep 2018) during which period it delivered +27.89%.

Formal education will make you a living; self-education will make you a fortune.
-- Jim Rohn

GNRC is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in GNRC's volatility from 25 Sep, 2018 to 2 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that GNRC has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

SP500 index has more chance of extreme outcomes than GNRC. Therefore, SP500 must receive a lower allocation than GNRC in your portfolio. SP500 index usually has shorter drawdown period than GNRC.

On a general note (since you are interested in GNRC), three instruments that deserve special mention are AMRH, ~SMALLCAP and APRN. They have all outperformed the market and must be closely watched for investment opportunities.

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