Generac Holdings, Inc. GNRC shares traded higher Monday as Hurricane Milton barrels toward the Florida coast. 

The Details: According to a report from The Weather Channel, Hurricane Milton has intensified to a Category 5 storm, and hurricane watches have been posted along Florida's Gulf Coast with landfall expected on Wednesday. Generac shares gained nearly 9% in Monday's session as investors anticipate extensive power outages to be caused by the storm.

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KeyBanc analysts released an alert on Generac's stock last week after Hurricane Helene left 4.7 million people without power at the peak of outages. KeyBanc pointed to the back-up power supply company as positioned to benefit from the most active quarter for power outages since 2018.

According to data from Benzinga Pro, Generac shares have climbed 24.5% over the month and marked a new 52-week high of $175.69 on Monday. 

GNRC Stock Prediction 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Generac Holdings, an investor could assess a stock's long-term prospects using a moving average and trend line.

If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line.

For Generac Holdings, the 200-day moving average sits at $135.37, according to Benzinga Pro, below the current price of $173.98. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade later if conditions remain stable.

GNRC Price Action: According to Benzinga Pro, Generac shares ended Monday's session up 8.52% at $173.82.

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