4. Generac Holdings Inc. (NYSE:GNRC)
Number of Hedge Funds Holding: 54
Stock Upside: 19.50%
Generac Holdings Inc. (NYSE:GNRC) is one of the best energy storage stocks to buy according to hedge funds. On April 7, 2026, Generac Holdings Inc. (NYSE:GNRC) announced a collaboration with CPower Energy to help commercial and industrial customers in PJM, North America’s largest grid, improve resiliency and demand response as electricity demand and prices surge.
The partnership combines Generac’s equipment and dealer network with CPower’s market expertise to deploy distributed generation solutions such as battery storage, generators, and microgrids.
Through this collaboration, customers can participate in capacity, ancillary services, and on‑bill programs, creating new recurring revenue streams and energy savings. Generac emphasized that pairing multiple assets like batteries and generators enhances economic dispatch and resilience, while CPower highlighted the ability for customers to turn distributed generation into flexible energy assets that reduce costs and support the grid. This initiative reinforces Generac’s push to scale its C&I business and lead in sustainable energy solutions.
On April 1, Canaccord Genuity lifted its price target on Generac Holdings Inc. (NYSE:GNRC) from $275 to $300 and kept the Buy rating unchanged. The firm took the decision after Generac’s financial outlook presentation at its analyst and investor day.
After analyzing Generac’s presentation, Canaccord revised its earnings estimates; it raised its 2028 non-GAAP EPS estimate to $13.09 from $12.48, and now values the stock at about 23 times that estimate.
Canaccord also noted that Generac’s Q4 FY2025 earnings, which undershot expectations, heavily weighed on its decision. The company shared the earnings report on February 11 in which the $1.61 EPS was well below the $1.81 that Wall Street expected. Quarterly revenue came in at $1.09 billion, which was a 11.6% year over year decline. However, Canaccord stated that this earnings softness did not shake their conviction because Generac’s management laid out a longer-range growth picture at the investor day that appeared credible. For instance, the management expects 2028 revenue to range from $6.2 billion to $6.6 billion and EBITDA to fall into the $1.25 billion to $1.45 billion range, the firm noted.
Generac Holdings Inc. (NYSE:GNRC) manufactures power generation equipment and energy technology solutions for residential, commercial, and industrial markets. Some of these include energy storage solutions like the PWRcell platform, which allows homeowners to store electricity for use during outages or peak demand periods.
