Why This Industrial Stock Surged Today

The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Isaac Pino and research analyst Blake Bos discuss topics around the investing world.

In today's edition, Isaac and Blake recap the market movers in the industrials category, kicking off with Generac Holdings. Shares of this manufacturer of electric generators skyrocketed nearly 17% in early trading, only to give up some of those gains by the end of the day to close up 11%. The gains were due to a boost in Generac's 2012 sales outlook -- the third instance this year. Increased demand for its residential products resulted in a full-year net sales outlook in the low-30% range, up from its earlier view of low 20% growth.

Why the bullish sentiment? In light of recent major power outages, both consumer and industrial demand is surging as customers' concerns about grid stability grow. Generac's broad product offerings have led some to believe the company is ripe for a takeover, possibly by an industrial giant like General Electric. Isaac and Blake dissect the prospects of a potential buyout in the following video. 

For GE, the recent financial crisis struck a blow, but management has kept its eye on targets like Generac as a means to deepen its industrial business portfolio. If you're a GE investor, you need to understand how these bets could drive this company to become the world's infrastructure leader. At the same time, you need to be aware of the threats to GE's portfolio. To help, we're offering comprehensive coverage for investors in a premium report on General Electric, in which our industrials analyst breaks down GE's multiple businesses. You'll find reasons to buy or sell GE, and you'll receive continuing updates as major events unfold during the year. To get started, click here now.

Blake Bos has no positions in the stocks mentioned above. Isaac Pino owns shares of General Electric. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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