Jim Cramer Breaks Down the Data Center Growth Story for Generac Holdings

Jim Cramer reviewed Generac Holdings Inc. (NYSE:GNRC) while breaking down 16 stocks for a market facing higher energy costs and economic uncertainty. Cramer explained why the stock recently sold off, as he commented:

Today, one of our favorites, Generac Holdings, the maker of backup power generators for both housing and the data center, held an investor meeting. At first glance, Wall Street, I don’t know, a little cool. Even though management said that their data center backlog has surged 75% over just the last 6 weeks, they didn’t announce a new long-term contract with a big hyperscaler. Maybe that’s what the hedge funds were looking for. You can never please those guys. That’s why the stock initially sold off 10% today before rebounding, finishing the session off less than 2%. It may sound like Generac’s being held to a ridiculously high standard, but this is a stock that’s up over 50% year to date. We don’t have a lot of those.

Photo by Yiorgos Ntrahas on Unsplash

Generac Holdings Inc. (NYSE:GNRC) manufactures and distributes energy technology products, including residential and industrial generators, battery storage systems, smart home solutions, and outdoor power equipment.

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