Here’s Why Generac Holdings (GNRC) Surged in Q3

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. Conestoga Smid Cap Composite underperformed the Russell 2500 Growth Index in the quarter and returned -1.1% net-of-fees vs +10.7% for the index. The narrow and “low quality” leadership in the stock market rally that began in April grew stronger in the third quarter. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its third-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Generac Holdings Inc. (NYSE:GNRC). Generac Holdings Inc. (NYSE:GNRC) is a manufacturer and supplier of power generation equipment, energy storage systems, and other power products. The one-month return of Generac Holdings Inc. (NYSE:GNRC) was 4.50%, and its shares gained 13.87% of their value over the last 52 weeks. On October 17, 2025, Generac Holdings Inc. (NYSE:GNRC) stock closed at $190.49 per share, with a market capitalization of $11.177 billion.

Conestoga Capital Advisors stated the following regarding Generac Holdings Inc. (NYSE:GNRC) in its third quarter 2025 investor letter:

“Generac Holdings Inc. (NYSE:GNRC) designs and manufactures backup power systems, battery storage, and clean energy solutions for residential, commercial, and industrial applications. Recurring extreme weather events and grid reliability concerns have driven heightened demand for residential and commercial standby generators. Dealer activity and channel restocking trends turned favorable, boosting near-term sales momentum. Margin recovery from cost controls and supply chain improvements also supported earnings upside.”

Jim Cramer on Generac (GNRC): “It's Not a Great Stock”

Generac Holdings Inc. (NYSE:GNRC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 51 hedge fund portfolios held Generac Holdings Inc. (NYSE:GNRC) at the end of the second quarter, up from 48 at the end of the previous quarter.  Generac Holdings Inc.’s (NYSE:GNRC) net sales increased 6% year-over-year to $1.06 billion in the second quarter of 2025. While we acknowledge the risk and potential of Generac Holdings Inc. (NYSE:GNRC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Generac Holdings Inc. (NYSE:GNRC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Generac Holdings Inc. (NYSE:GNRC) and shared the list of stocks Jim Cramer shed light on. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.