Latest news with #GEV
Yahoo
6 days ago
- Business
- Yahoo
GEV's Turbines to Power Saudi Gas Plant: How to Play the Stock
GE Vernova Inc. GEV recently clinched an order to supply five of its advanced 7H-Class gas turbines for Saudi Arabia's 3 gigawatts (GW) Qurayyah Independent Power Plant Expansion Project. This further strengthens GEV's Saudi ties, with the company playing a crucial role in stimulating the evolution of the Kingdom's energy infrastructure for almost 90 years. With Saudi Arabia's goal of generating 50% of its electricity from gas by 2030, this deal highlights GE Vernova's technological edge in energy transition and potential for recurring revenues from such infrastructure projects. This, in turn, might encourage investors focused on clean energy stocks to add GEV stock to their portfolios. However, before making any hasty decision, let's delve deep into the company's performance at the bourses in recent times, growth prospects as well as risks (if any) to investing in the same. This way, an investor can make an informed decision. Shares of GE Vernova have surged an impressive 47.5% in the year-to-date period, outperforming the Zacks Alternative-Energy industry's growth of 16.7% and the broader Zacks Oils-Energy sector's decline of 4.4%. It has also outpaced the S&P 500's rise of 0.1% over the same period. Image Source: Zacks Investment Research A similar stellar performance has been delivered by other industry players, such as Constellation Energy Corp. CEG and Talen Energy Corp. TLN, whose shares have surged 40.3% and 23.4%, respectively, year-to-date. As industries worldwide transition toward a more sustainable energy future, GE Vernova plays a vital role by providing cutting-edge technologies that significantly reduce greenhouse gas emissions. To this end, the company's recent developments, indicating its continued efforts to expand its footprint in the clean energy industry, may have boosted investor confidence, which was duly reflected in its year-to-date share price hike. Impressively, GE Vernova entered 2025 with a $20 million investment plan, supported by Singapore's EDB, to develop next-generation repair technologies for its HA gas turbines at its Global Repair Service Center. In February, it completed upgrades at key Iraqi power plants using its turbines, adding more than 500 MW to the national grid ahead of summer. In April, its wind segment signed a 20th supply agreement with Germany's BBWind to provide turbines for 18 MW of community wind projects. Most recently, the company secured a major contract with Oglethorpe Power in the United States to supply two high-efficiency gas turbines, hydrogen-cooled generators, steam turbines, and associated tech for a new natural gas facility. These milestones underscore GE Vernova's expanding global presence and strategic push across gas, wind, and service-driven power solutions in 2025. Driven by rising global demand for reliable, lower-emission energy, GE Vernova is seeing strong order growth in its gas power business. In the first quarter of 2025, gas turbine orders rose 11.8% year over year, while heavy gas turbine orders surged 81.3%. This order growth is expected to bolster GEV's revenues in the days ahead. The company is also benefiting from growing demand for its low-emission equipment, backed by increasing usage of electricity across the globe. Notably, equipment revenues climbed 16% year over year in the first quarter, reflecting robust momentum. With global electricity consumption projected to grow 3.9% in 2025 and around 4% annually through 2027 (per the International Energy Agency), GE Vernova is well-positioned for continued top-line growth, supporting its long-term operational strength. In line with this, the Zacks Consensus Estimate for GEV's long-term (three-to-five years) earnings growth rate is pegged at a solid 18%. In fact, the growing electricity demand worldwide from renewable sources has also been bolstering the long-term growth prospects of other clean energy stocks like TLN and CEG. Notably, the long-term earnings growth rate for TLN is 7.1%, while that for CEG is 12.4%. Now, let's take a quick look at GEV's near-term estimates to see if they also have a similar growth story. The Zacks Consensus Estimate for 2025 and 2026 sales implies an improvement of 6.4% and 10%, respectively, year over year. A similar improvement can be witnessed in the company's 2025 and 2026 earnings estimates. Moreover, the Zacks Consensus Estimate for GEV's near-term earnings estimate shows solid improvement over the past 60 days. The upward revision in earnings estimates indicates analysts' increasing confidence in the stock's earnings-generating capabilities. Image Source: Zacks Investment Research Image Source: Zacks Investment Research Despite strong growth prospects, GE Vernova faces challenges that investors should note. The offshore wind industry continues to struggle with rising material costs and persistent supply chain issues, leading to multiple project cancellations. As a wind turbine manufacturer, GEV is under pressure from increased product and project costs, along with delays in execution timelines. These disruptions could affect the timing of cash collections and reduce contract profitability. If such adverse developments persist or worsen, they may lead to financial losses beyond current projections, posing a potential risk to the company's overall performance and investor returns in the near term. In terms of valuation, GEV's forward 12-month price-to-earnings (P/E) is 52.88X, a premium to its peer group's average of 15.93X. This suggests that investors will be paying a higher price than the company's expected earnings growth compared to its peers. Image Source: Zacks Investment Research To conclude, investors interested in GEV Vernova should wait for a better entry point, considering its premium valuation. However, those who have already invested in this Zacks Rank #3 (Hold) company may continue to do so, as its upbeat sales estimates, solid share price returns over the past year and upward revision in near-term earnings estimates offer solid growth prospects. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Constellation Energy Corporation (CEG) : Free Stock Analysis Report Talen Energy Corporation (TLN) : Free Stock Analysis Report GE Vernova Inc. (GEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
GE Vernova Inc. (GEV) is Attracting Investor Attention: Here is What You Should Know
GE Vernova (GEV) has recently been on list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this the energy business spun off from General Electric have returned +30.8%, compared to the Zacks S&P 500 composite's +6.7% change. During this period, the Zacks Alternative Energy - Other industry, which GE Vernova falls in, has gained 17%. The key question now is: What could be the stock's future direction? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. GE Vernova is expected to post earnings of $1.57 per share for the current quarter, representing a year-over-year change of +121.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +8.9%. The consensus earnings estimate of $7.16 for the current fiscal year indicates a year-over-year change of +28.3%. This estimate has changed -0.3% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $11.26 indicates a change of +57.3% from what GE Vernova is expected to report a year ago. Over the past month, the estimate has changed -0.6%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for GE Vernova. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. For GE Vernova, the consensus sales estimate for the current quarter of $8.76 billion indicates a year-over-year change of +6.8%. For the current and next fiscal years, $36.98 billion and $40.44 billion estimates indicate +5.9% and +9.4% changes, respectively. GE Vernova reported revenues of $8.03 billion in the last reported quarter, representing a year-over-year change of +10.6%. EPS of $0.91 for the same period compares with -$0.41 a year ago. Compared to the Zacks Consensus Estimate of $7.54 billion, the reported revenues represent a surprise of +6.46%. The EPS surprise was +102.22%. Over the last four quarters, GE Vernova surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period. Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. GE Vernova is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about GE Vernova. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GE Vernova Inc. (GEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
GE Vernova Inc. (GEV) Can Benefit A Lot From Trump's Tariffs, Says Jim Cramer
We recently published a list of . In this article, we are going to take a look at where GE Vernova Inc. (NYSE:GEV) stands against other stocks that Jim Cramer discusses. GE Vernova Inc. (NYSE:GEV) is the former energy division of industrial conglomerate General Electric. Cramer has mentioned the firm several times in his morning show. Before the DeepSeek selloff in January, Cramer was full of praise for the firm as he believed that GE Vernova Inc. (NYSE:GEV) stands to benefit from AI infrastructure in the US. In fact, while investors piled into all kinds of nuclear stocks, the CNBC host maintained that GE Vernova Inc. (NYSE:GEV) was the only nuclear stock worth investing in. The recent investor caution for AI has made Cramer dub the firm an 'unknown soldier.' Here are his latest thoughts about the firm: 'Look, GE Vernova, the other companies they're not adding capacity. I don't understand why they're not, but they've been fooled before. There's a little bit of money coming in from GE Vernova, that's probably the best stock in the entire market. Because they make turbines. . .and what's incredible is, if you're another government that has a trade surplus with us, you can either buy Boeing or you can buy the turbines. So it is the hottest area of the entire economy.' Copyright: kadmy / 123RF Stock Photo In a recent Mad Money episode, Cramer remarked: '… GE Vernova is the unknown soldier, okay? The one that got to the other side, and I think is going to keep going, and that's what matters… GE Vernova is at the heart of every major power trend there is, except solar, which is lucky because the solar stocks got eviscerated today by the big ugly bill that just passed out… Overall, GEV ranks 7th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of GEV, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GEV and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
ORA vs. GEV: Which Stock Should Value Investors Buy Now?
Investors interested in Alternative Energy - Other stocks are likely familiar with Ormat Technologies (ORA) and GE Vernova (GEV). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits. Ormat Technologies and GE Vernova are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that ORA likely has seen a stronger improvement to its earnings outlook than GEV has recently. But this is only part of the picture for value investors. Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels. Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years. ORA currently has a forward P/E ratio of 34.22, while GEV has a forward P/E of 64.89. We also note that ORA has a PEG ratio of 3.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GEV currently has a PEG ratio of 3.60. Another notable valuation metric for ORA is its P/B ratio of 1.68. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, GEV has a P/B of 13.10. These are just a few of the metrics contributing to ORA's Value grade of B and GEV's Value grade of D. ORA stands above GEV thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ORA is the superior value option right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ormat Technologies, Inc. (ORA) : Free Stock Analysis Report GE Vernova Inc. (GEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-05-2025
- Business
- Yahoo
Jim Cramer on GE Vernova (GEV): 'I Bet It Keeps Winning'
We recently published a list of . In this article, we are going to take a look at where GE Vernova Inc. (NYSE:GEV) stands against other stocks that Jim Cramer discusses. Calling GE Vernova Inc. (NYSE:GEV) the 'unknown soldier' that made it, Cramer said: '… GE Vernova is the unknown soldier, okay? The one that got to the other side, and I think is going to keep going, and that's what matters… GE Vernova is at the heart of every major power trend there is, except solar, which is lucky because the solar stocks got eviscerated today by the big ugly bill that just passed out… GE Vernova Inc. (NYSE:GEV) provides technologies and services for generating, transferring, converting, and storing electricity, offering solutions across gas, nuclear, hydro, steam, wind, solar, storage, and grid systems. Moreover, the company offers software and hardware for managing and distributing electrical power efficiently. Overall, GEV ranks 1st on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of GEV as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GEV and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
