Generator Company Generac Is Rallying Ahead Of The East Coast Blizzard

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Shares of generator company Generac are surging on Monday ahead of a huge blizzard expected to hit the East Coast starting Monday afternoon.

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Near 12:30 pm ET on Monday, Generac shares were up more than 4.5% to around $48.20 per share.

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The trade here is that if this storm causes widespread power outages, homeowners and businesses will need to buy generators - potentially Generac generators! - to keep the power running.

Now, this isn't the first time that Generac shares have rallied ahead of a major weather event with potential to cause huge power outages.

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Back in 2012, shares of Generac surged more than 40% in two months before and after Hurricane Sandy hit the East Coast, which knocked out power to millions in the New York metro area.

On October 31, 2012, just a few days after Sandy hit the New york metro area, Generac released its quarterly results, in which the company's CEO said, "The events of the last few days continue to demonstrate for home owners and business owners the importance of having a backup plan for their power needs."

And during the quarter in which Hurricane Sandy, sales of residential products rose almost 30% against the prior year.

As always, no matter what is happening in the world, Wall Street will find a way to trade it.

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Generac's Hurricane Sandy rally.

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