5 Stocks To Buy According to Michael Burry

3. Generac Holdings Inc. (NYSE:GNRC)

Percentage of Scion Asset Management’s portfolio as of Q2 2023: 0.47%

Generac Holdings Inc. (NYSE:GNRC) is a Wisconsin-based company that manufactures backup power generation products and other related items for residential, commercial, and industrial markets.

Michael Burry’s firm owned 55,000 shares of Generac Holdings Inc. (NYSE:GNRC), valued at $8.2 million.

In Q2, Generac Holdings Inc. (NYSE:GNRC) missed its EPS estimates by $0.08 after reporting a non-GAAP EPS of $1.08. The company’s revenue outperformed the analyst estimates but declined by 22.5% year-over-year to $1 billion.

Meridian Funds made the following comment about Generac Holdings Inc. (NYSE:GNRC) in its Q4 2022 investor letter:

“Generac Holdings Inc. (NYSE:GNRC), is a manufacturer of power generation equipment with a leading position in home standby generators. Generac also offers consumers a home energy management system that harnesses and stores power from the sun to be used for backup during utility power outages. Severe weather events that strained already-overburdened power grids in California, Texas, and other key markets have created a significant opportunity for home power generation equipment manufacturers. Moreover, with the future potential to aggregate these distributed energy resources through the company’s grid services business, homeowners have the potential to monetize these assets. The stock declined during the quarter as the company reduced its full-year revenue guidance due largely to labor shortages in Generac’s dealer network which resulted in a slowdown in installations and implementations. As a consequence, dealers have reduced their on-site inventory. During the period, we exited our position in the company.”