Please ensure Javascript is enabled for purposes of website accessibility

Wall Street Is Lighting a Fire Under These 2 Stocks

By Dan Caplinger – Jun 8, 2021 at 3:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On a mixed day for the stock market, a couple of favorites saw nice gains.

Wall Street still has a huge amount of influence over stocks. Especially when it comes to day-to-day fluctuations, you can often attribute big gains or losses to what analysts have to say about a company.

On Tuesday, a couple of stocks stood out in getting attention from Wall Street pros. With the Dow Jones Industrial Average (^DJI -1.15%), S&P 500 (^GSPC -1.02%), and Nasdaq Composite (^IXIC) all seeing modest gains on the day, the moves for Generac Holdings (GNRC -5.60%) and NextDecade (NEXT -2.14%) were notable and raised some eyebrows among market participants.

Index

Percentage Change (Decline)

Point Change

Dow Jones Industrials

(0.09%)

(31)

S&P 500

+0.02%

+1

Nasdaq Composite

+0.31%

+43

Data source: Yahoo! Finance.

This powerful stock is heating up

Shares of Generac Holdings climbed more than 6% on Tuesday. The maker of backup generator equipment for residential and commercial customers earned some favorable comments from analysts looking for ways to play the summer storm season.

Several workers moving a generator into position near a home.

Installing a home generator. Image source: Getty Images.

The positive views came from analysts at KeyBanc, who reaffirmed their price target of $400 per share on Generac. As they see it, the company trades at an attractive level compared to its past earnings and future prospects, especially given rising interest in its products to provide standby power for homes when grid power becomes unavailable. It's common at various points of the year for investors to start paying attention to Generac again, whether it's when winter storms hit or as hurricane and tornado season approaches in the late spring and summer months.

Solar energy storage is also a potential growth area for Generac. As more homeowners have seen the value of keeping their property in shape and in optimal condition during the pandemic, the value of Generac systems has gone up in the eyes of many.

With today's rise, Generac is among the few huge performers from 2020 that have regained nearly all of their losses in the past few months. The stock is now challenging record highs, and continued success in driving demand could be what pushes Generac over the top.

NextDecade gets another vote of confidence

Gains for small-cap NextDecade were much larger. The stock rose almost 60% on Tuesday.

The catalyst for the little-known provider of liquefied natural gas was another upgrade from Wall Street analysts. The latest came from Evercore ISI, which boosted its rating on the stock from in-line to outperform. Evercore also tripled its price target on NextDecade's stock to $9 per share, leaving room for more upside even after today's big gains.

For years, U.S. natural gas prices have been low enough relative to their levels in other parts of the globe to encourage would-be importers of U.S. natural gas to consider LNG transport. Yet the huge disruptions in the energy market in 2020 due to the pandemic put at least a brief halt to most of those prospects. Now, though, investors increasingly see the prospects for NextDecade as becoming favorable enough for it to move forward with its Rio Grande project in Texas.

The energy industry has rebounded sharply in 2021, and that's helping stocks throughout the sector. With LNG becoming economically viable again, it could spell a nice turnaround for NextDecade and its peers.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Generac Holdings Stock Quote
Generac Holdings
GNRC
$168.68 (-5.60%) $-10.00
Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
^DJI
$29,926.94 (-1.15%) $-346.93
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
^IXIC
$11,148.64 (%)
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
^GSPC
$3,744.52 (-1.02%) $-38.76
NextDecade Corporation Stock Quote
NextDecade Corporation
NEXT
$6.41 (-2.14%) $0.14

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
339%
 
S&P 500 Returns
109%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.