Jim Cramer’s 5 Latest Stock Picks This Week

This article presents an overview of Jim Cramer’s 5 Latest Stock Picks This Week. For a detailed overview of such stocks, read our article, Jim Cramer’s 10 Latest Stock Picks This Week.

5. Generac Holdings Inc (NYSE:GNRC)

Number of Hedge Fund Investors: 34

Generators and backup power solutions company Generac Holdings Inc (NYSE:GNRC) is one of the stocks Jim Cramer is bullish on. In a recent program Cramer said as long as interest rates are expected to go lower Generac Holdings Inc (NYSE:GNRC) is “fine with me.” Jim Cramer said he likes the stock and he had the management on his program.

Of the 933 hedge funds in Insider Monkey’s database, 34 hedge funds had stakes in Generac Holdings Inc (NYSE:GNRC). The biggest stakeholder of Generac Holdings Inc (NYSE:GNRC) as of the end of 2023 was John W. Rogers’ Ariel Investments which owns a $280 million stake in Generac Holdings Inc (NYSE:GNRC).

Polen U.S. Small Company Growth Strategy stated the following regarding Generac Holdings Inc. (NYSE:GNRC) in its fourth quarter 2023 investor letter:

“Generac Holdings Inc. (NYSE:GNRC) is the leading brand for a wide range of power equipment including standby generators for homes and backup power for commercial and industrial markets. Generac is uniquely positioned due to its scale–it’s the largest manufacturer in the U.S. and has the largest dealer/distributor network with 75% market share in the residential business and elevated market share in commercial/industrial depending on the end market. Generac was previously held in the U.S. SMID strategy prior to exiting the position in 2021 due to concerns around the supply chain and a wider range of potential outcomes given a surge in demand through the pandemic. Since then, earnings have declined as pandemic era pull-forward demand normalized and the valuation is far more attractive. We believe long-term earnings per share (EPS) growth is in the mid to high teens but that EPS will grow significantly faster over the next two years as margins inflect post COVID re-set—something we are already observing in the business fundamentals.”