Jim Cramer on Generac: "They Didn't Bet Big Enough on the Data Center"

Generac Holdings Inc. (NYSE:GNRC) is one of the stocks Jim Cramer recently discussed. Cramer noted that the company “got slammed” after reporting its quarter, as he stated:

“But then you take a look at Generac. Well, what do they do? They’re the maker of backup generators with some data center exposure, even though it’s clearly not enough because the stock got slammed today in response to a not-so-hot quarter. They even cut their forecast because, in the end, Generac’s core business is making generators you can use during a natural disaster, and there haven’t been enough natural disasters.

Unlike CAT, these guys did an all-in pivot to become a more secular growth story. They didn’t bet big enough on the data center. That wasn’t smart. A few companies in America were like CAT. Most were like Generac.”

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