BG Investment Services LLC purchased a new stake in GE Vernova Inc. (NYSE:GEV – Free Report) in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 3,522 shares of the company’s stock, valued at approximately $3,348,000.
Other institutional investors and hedge funds also recently made changes to their positions in the company. Evanson Financial LLC lifted its position in shares of GE Vernova by 5.6% during the 3rd quarter. Evanson Financial LLC now owns 247 shares of the company’s stock valued at $235,000 after acquiring an additional 13 shares during the period. Citizens Financial Group Inc. RI boosted its position in GE Vernova by 138.3% in the third quarter. Citizens Financial Group Inc. RI now owns 16,912 shares of the company’s stock worth $16,074,000 after purchasing an additional 9,816 shares during the last quarter. Simplicity Wealth LLC grew its position in GE Vernova by 7.3% during the third quarter. Simplicity Wealth LLC now owns 2,080 shares of the company’s stock valued at $1,977,000 after buying an additional 141 shares during the period. Mountain Hill Investment Partners Corp. increased its stake in shares of GE Vernova by 45.5% during the 3rd quarter. Mountain Hill Investment Partners Corp. now owns 80 shares of the company’s stock worth $76,000 after purchasing an additional 25 shares during the last quarter. Finally, Gibbs Wealth Management raised its stake in GE Vernova by 34.6% in the 3rd quarter. Gibbs Wealth Management now owns 1,116 shares of the company’s stock valued at $1,061,000 after acquiring an additional 287 shares during the period.
Key GE Vernova News Here are the key news stories impacting GE Vernova this week:
Positive Sentiment: GE Vernova entered multiyear agreements with Venture Global and Baker Hughes covering up to 16 power-island units and transformer equipment. The systems are intended to provide behind-the-meter power for LNG facilities and planned AI data centers, supporting the company’s backlog and exposure to rising electricity demand. Why Is GE Vernova Tied To 16 Off Grid Power Units? Positive Sentiment: BMO Capital and Bank of America Securities reportedly maintained or issued Buy views on GEV, while several recent analyses highlighted long-term growth from grid modernization, electrification and expanding power demand. GE Vernova Gets a Buy from BMO Capital Neutral Sentiment: Investors are awaiting GE Vernova’s third-quarter 2026 results, with analysts focused on revenue, margins, orders and other operating metrics. The earnings report could clarify whether demand from data centers and broader power infrastructure is translating into profitable growth. Seeking Clues to GE Vernova Q3 Earnings Negative Sentiment: GEV fell sharply alongside Vertiv, Bloom Energy and Eaton after Meta’s larger AI spending outlook raised concerns about how data-center expansion will be financed. The move suggests investors are questioning the sustainability, timing and returns of AI infrastructure orders, even though long-term demand remains strong. GE Vernova Slumps as Meta Spending Outlook Stokes AI Financing Worries Negative Sentiment: Erste Group slightly reduced its 2027 EPS forecast to $24.36 from $24.55. The modest cut adds to execution concerns, particularly after GE Vernova’s prior quarterly EPS missed expectations despite stronger-than-expected revenue. GE Vernova Earnings Estimate Revision Analyst Ratings Changes A number of research firms have recently commented on GEV. Mizuho raised their price objective on shares of GE Vernova from $913.00 to $949.00 and gave the company a “neutral” rating in a research report on Friday, July 24th. The Goldman Sachs Group raised GE Vernova from a “buy” rating to a “market outperform” rating in a research note on Monday, September 14th. President Capital upped their target price on GE Vernova from $1,368.00 to $1,398.00 and gave the stock a “buy” rating in a report on Wednesday, July 29th. Evercore reissued an “outperform” rating and issued a $1,350.00 target price on shares of GE Vernova in a report on Thursday, October 1st. Finally, BNP Paribas Exane dropped their price target on shares of GE Vernova from $1,190.00 to $1,090.00 and set a “neutral” rating on the stock in a report on Thursday, August 20th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $1,164.87. Check Out Our Latest Stock Analysis on GEV
GE Vernova Price Performance GEV stock opened at $814.37 on Friday. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.62 and a current ratio of 0.85. GE Vernova Inc. has a one year low of $530.16 and a one year high of $1,195.94. The company’s fifty day moving average price is $947.07 and its 200-day moving average price is $1,000.96. The company has a market capitalization of $216.89 billion, a PE ratio of 23.31, a price-to-earnings-growth ratio of 2.82 and a beta of 1.14.
GE Vernova (NYSE:GEV – Get Free Report) last posted its earnings results on Wednesday, July 22nd. The company reported $2.47 earnings per share for the quarter, missing analysts’ consensus estimates of $3.17 by ($0.70). The business had revenue of $11.10 billion during the quarter, compared to analysts’ expectations of $10.79 billion. GE Vernova had a net margin of 23.03% and a return on equity of 42.42%. The company’s revenue for the quarter was up 21.9% compared to the same quarter last year. During the same period last year, the business posted $1.86 earnings per share. On average, equities analysts anticipate that GE Vernova Inc. will post 15.04 EPS for the current fiscal year.
GE Vernova Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 24th. Stockholders of record on Tuesday, October 27th will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 0.2%. The ex-dividend date is Tuesday, October 27th. GE Vernova’s dividend payout ratio (DPR) is 5.72%.
About GE Vernova (Free Report)
GE Vernova Inc (NYSE: GEV) is an energy technology company focused on helping generate, transmit, store and deliver electricity. The company serves utilities, power producers, grid operators, commercial and industrial customers, and other energy-sector participants worldwide.
Its business is organized around three primary areas: Power, Wind and Electrification. Power provides technologies and services for gas and steam power generation, hydropower, nuclear power and other energy systems.
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Do you fear bad news can do more harm to a company's stock than good news can help it? It's not unheard-of. Investors are inherently defensive, wired to prevent losses more than they are to reap gains.
It's something investors are grappling with right now regarding GE Vernova (GEV -1.50%). While demand for its natural gas power turbines appears to be soaring, interest in its wind turbines is tumbling. Can the former's growth offset the latter's decline? Here are some visual aids to help put things in perspective.
Image source:
Not a headwind, but a shift
Yes, GE Vernova is one of the offshoots of the old General Electric, spun off from the iconic company in 2024. GE Vernova's focus is power production. In addition to wind and natural gas turbines, this enterprise manufactures hydropower equipment, power grid solutions, and even nuclear power reactors in addition to systems and software that optimize its technology.
Demand for these different categories of equipment is forever changing too, in step with constant rethinking of how to best shore up the planet's electricity shortage. And as it turns out, institutions can take or leave wind-driven electricity. GE Vernova's wind power equipment revenue fell 11% year over year to $2 billion during the second quarter of the year, paired with a 40% decline in orders for wind turbines, extending a slump that really materialized beginning in 2024.
Data source: GE Vernova. Chart by author.
This slump, however, isn't so much an indictment of renewable energy as much as it's an indication of shifting preference for a more proven and persistent form of clean energy. That's the aforementioned natural gas power turbines, which account for the bulk of GE Vernova's power division's sales. This business reported year-over-year revenue growth of 14% to $5.5 billion in Q2, while orders soared 135% to $16.7 billion. Both growth figures extend well-established trends.
Data source: GE Vernova. Chart by author.
Perhaps even more helpful is a combined, comparative visualization of these order numbers along with those of GE Vernova's electrification arm, which handles equipment like transformers and switchgear. This image speaks volumes, with total combined orders reaching a record $24.2 billion in Q2 alone.
Data source: GE Vernova. Chart by author.
The company's biggest roadblock right now? Mostly just a lack of production capacity, though it's addressing that as well.
The graphics speak for themselves
In answer to the overarching question, then, yes, the growth of GE Vernova's gas turbine business can more than offset the slow collapse of its wind turbine business. It's clearly doing so, in fact.
Its long-term future looks bright too, and not necessarily for the reason you might think. Although it is true that artificial intelligence (AI) data centers are purchasing GE Vernova's natural gas turbines as a source of secondary or even primary power, an implosion of the AI business (and its capital spending) wouldn't be a fatal blow to this company's leading growth engine. As CEO Scott Strazik noted during July's Q2 conference call, only 20% of GE Vernova's power division's current backlog is data center customers. The rest are conventional customers, such as utility companies, that need this equipment regardless of the economic backdrop.
Constellation Energy (CEG -0.69%) and Vistra (VST -0.48%) are both benefiting from artificial intelligence (AI) power demand. Both have large power supply contracts with technology companies building AI data centers. One big difference between the two is scale, which may give Constellation Energy the edge for more conservative types.
GE Vernova (GEV -1.50%) sells the turbines utilities use to generate power, with a huge $176 billion backlog. It is the most growth-oriented choice here, which will likely give it the edge for some investors. Here's where these three AI power plays sit from an investor's standpoint.
Image source: Getty Images.
Supplying AI with power The big story for Constellation and Vistra is the growth in electricity demand. Between 2005 and 2025, electricity demand grew 10%. Between 2025 and 2045, demand is expected to grow 60%. That's a step change driven by new technologies like artificial intelligence. The International Energy Agency expects AI power demand to grow four times faster than all other power demand over the next decade.
Constellation and Vistra are independent power producers, selling electricity outside of the regulatory framework. That means they sell power at market rates, which will let them benefit if demand drives prices higher. And they are both selling power directly to the technology companies building the AI backbone. Moreover, their stocks have similar valuations, with both sporting price-to-earnings ratios of around 24x.
CEG Constellation Energy$253.45-$1.76 (-0.69%)
NASDAQ · As of 4:00 PM ET 10/23/26
The big differences between the two come down to scale, generation, and dividend growth. More conservative investors will probably be better served going with Constellation, which is nearly twice as large, is the largest nuclear power plant operator in the United States, and offers a faster-growing dividend. Their yields are similar, at around 0.6%, just like their valuations, but Constellation Energy's more rapid dividend growth will be very attractive to income-oriented investors, as it can turn that miserly yield into a much larger income stream over time.
That said, if you prefer more growth-oriented investments, Vistra could be the better option. The problem is that it is expensive to build scale in the utility sector, noting that Vistra's debt-to-equity ratio is a lofty 3.6x compared to Constellation's 0.8x. (For reference, GE Vernova's ratio is an even lower 0.25x.) Utility businesses often operate with material leverage, but if you are risk-averse, Constellation will probably still be the better choice.
VST Vistra$140.16-$0.67 (-0.48%)
NYSE · As of 4:00 PM ET 10/23/26
Supplying the power suppliers GE Vernova is another option for growth-oriented investors that may be more appealing. Formerly part of the old General Electric, GE Vernova makes power turbines, including both wind and natural-gas turbines. It essentially sells these vital parts to companies such as Constellation and Vistra, among others. Demand has been strong, with GE Vernova's backlog totaling $176 billion at the end of the second quarter of 2026.
$815.00-$12.42 (-1.50%)
NYSE · As of 4:00 PM ET 10/23/26
That suggests years of growth ahead for GE Vernova, and it doesn't require a bet on a single power producer. GE Vernova can sell to any company. The stock's valuation, meanwhile, is roughly similar to that of Constellation and Vistra, with a P/E ratio of around 24x. GE Vernova has a fairly short history as a stand-alone business, but it is a well-respected and established company within the power industry. If growth is what you are after, it probably beats out Vistra.
Vistra is the odd man out More conservative investors will probably be best served by Constellation Energy because of its scale, reliable nuclear power portfolio, and faster-growing dividend. Growth investors will likely be more appreciative of GE Vernova's massive backlog and its ability to sell to any power company looking to meet AI demand growth. That leaves Vistra somewhere in the middle, with a relatively high debt-to-equity ratio hinting that its risk/reward profile may not be as attractive as the other two options here.
GE Vernova (GEV -1.50%) shares had a tough week. The maker of gas turbines and grid equipment fell about 11% on Thursday, Oct. 22, alone. As I write, the stock sits near $825, about 30% under the $1,174.86 it closed at on June 30.
The business, though, keeps getting bigger. GE Vernova finished June with a $176 billion backlog. And in the second quarter, its non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 62% year over year.
Where could the stock be in 2030? Running management's own targets forward, I figure around $1,100 a share by late 2030. That'd be a good gain, but still under the June record.
Image source: The Motley Fool.
The backlog keeps growingShowing how much demand GE Vernova sits on, its total backlog has risen from $150 billion at the end of 2025 to $163 billion after the first quarter and $176 billion after the second. That's almost four times the revenue management expects this year.
In December 2025, management said it expected backlog to hit around $200 billion by the end of 2028. On the second-quarter earnings call in July, CEO Scott Strazik said the company was on pace to get there in 2027 -- a year early.
Gas turbines fueled much of this growth. GE Vernova's gas equipment backlog and slot reservation agreements (agreements that save a spot in its production schedule) hit 116 gigawatts in the second quarter, up from 83 gigawatts at the end of 2025.
Customers are paying more for these spots, too. Gas equipment orders in the first half of 2026 were priced over 20% above those booked in the last three months of 2025.
"We had a strong first half and now have agreements signed into '31," Strazik said on the call.
And AI data centers aren't the full story. Strazik said around 80% of the gas gigawatts under contract are for traditional customers, and about 20% for data centers.
The bigger swing factor is margin. GE Vernova's adjusted EBITDA margin was 8.4% in 2025. It rose to 10.5% in the first half of 2026, with 11.3% in the second quarter, and management is guiding for 12% to 14% for the full year.
Management's multi-year outlook calls for $56 billion of revenue and a 20% adjusted EBITDA margin by 2028, a goal it raised in January to include grid equipment supplier Prolec GE. Together, those come to about $11.2 billion of adjusted EBITDA, more than three times the $3.2 billion the business posted in 2025. That means margins need to keep rising at around the rate they have over the last year.
After that, I'd assume adjusted EBITDA climbs about 10% a year through 2030 at a flat 20% margin. That seems reasonable to me, because management is working to boost yearly gas turbine output from 24 gigawatts in 2028 to 30 gigawatts in 2030. This puts 2030 adjusted EBITDA at around $13.6 billion.
Of course, this might prove conservative, as management said in December 2025 that GE Vernova is positioned to deliver "substantially higher returns beyond 2028."
Today's price already assumes a lotAt around $825 a share, GE Vernova's market cap is about $217 billion, or about 19 times the adjusted EBITDA management targets for 2028. The stock also costs about 34 times earnings on 2027 estimates -- a premium price.
GEV GE Vernova$815.00-$12.42 (-1.50%)
NYSE · As of 4:00 PM ET 10/23/26
If investors pay that same multiple of around 19 times adjusted EBITDA in late 2030, the company would be worth about $263 billion. GE Vernova also keeps cutting its share count. It bought back 4.3 million shares in the first half of 2026. If buybacks trim the count around 2% a year from about 266 million shares outstanding at the end of June, the stock would be worth about $1,070 a share, or about $1,100 in round numbers.
From about $825, hitting $1,100 in late 2030 means about 7% a year, plus a small dividend.
The estimate also relies on factories ramping as planned, and the wind unit is still expected to lose around $400 million on an EBITDA basis this year. The third-quarter report, due before the market opens on Wednesday, Oct. 28, should show if gas turbine output hit the 20-gigawatt annual rate management expected for the quarter.
In the end, I think GE Vernova's business can keep delivering, and the stock can probably beat today's price by 2030. But around 7% a year isn't much of a payoff for a growth stock that can fall 11% in a day. I'd get more interested under about $740, where the same $1,100 forecast would mean about 10% a year.
GE Vernova heads into its October 28 earnings report with a $176 billion backlog and freshly raised guidance, yet the stock just shed more than 14% in a month as Wall Street grows uneasy about how AI spending gets financed.…
GE Vernova (NYSE:GEV | GEV Price Prediction) reports third-quarter results before the open on Oct. 28. The stock fell 11.53% last week on fears about how AI spending will be financed. This report needs to show that the record backlog is still turning into revenue and cash.
Record Backlog Meets a Nervous Market Last quarter, revenue of $11.10B rose 21.8% year over year and beat the $10.77B consensus. Orders jumped 88% organically to $24.20B, which lifted backlog to a record $176 billion. That was up $13 billion from the prior quarter. Free cash flow of $5.10B was more than the company generated in all of 2025.
In July, management raised its 2026 revenue guidance to $45.5B-$46.5B. It also lifted the free cash flow target to $11.5B-$12.5B from $6.5B-$7.5B. CEO Scott Strazik expects at least 125 GW of gas equipment under contract by year-end, up from 116 gigawatts at the end of Q2.
Since then, the mood has turned. Shares closed Friday at $814.58, down 14.37% over the past month. Barron’s linked the drop to Meta Platforms (NASDAQ:META), mentioning AI financing fears triggered by Meta. The stock is still up 24.93% year to date.
Analysts Expect About 20% Revenue Growth Metric Consensus Year-Ago Actual Implied YoY Growth Q3 2026 EPS $4.0219 N/A N/A Q3 2026 Revenue $11.997B $10.00B 20.0% FY2026 EPS $30.4293 N/A N/A FY2026 Revenue $46.32B $38.10B 21.6% Analysts have trimmed the Q3 EPS estimate from $4.3269 90 days ago to $4.0219 now.
Turbine Output, Pricing and Data Center Orders Take Center Stage Gas Power comes first on my watch list. Management said quarterly output rises from about three gigawatts to five gigawatts starting in Q3. It expects Power revenue to grow 17%-19% with margins of about 17%-18%. Equipment orders in the first half were priced more than 20% above Q4 2025 levels.
You should also look at what makes up the backlog. Slot reservations made up 63 gigawatts of the gas pipeline, while firm Gas Power backlog was at 53 gigawatts. How quickly reservations become firm orders shows how durable that demand is.
In Electrification, data center orders exceeded $5 billion in the first half, more than double the total for all of 2025. The segment’s margin rose 700 basis points to 18.4%, and Prolec GE added nearly $900 million in revenue. Management expects Q3 Electrification revenue of $3.8 billion to $4 billion.
Wind is still a drag. After a $275 million EBITDA loss in Q2, management expects Q3 to come in near break-even. It is counting on firmer onshore service profits and lower offshore costs. Positive free cash flow is also expected in Q3, though first-half cash flow should run well ahead of the second half.
Cash Conversion Will Show Whether the AI Selloff Sticks GE Vernova’s growth story depends on how much power AI data centers will need. The Department of Energy projects data centers will use up to 12% of U.S. electrical demand by 2028. The recent selloff raises the question of how hyperscalers will pay for that expansion (GE Vernova is one of seven power, cooling, and networking suppliers we profiled in a free report on the AI infrastructure buildout). A larger backlog, firm turbine pricing and cash flow on pace with July’s raised targets would show that customers are sticking with their commitments.
Contact [email protected] for any questions or corrections.
After two decades of sluggish growth, U.S. electricity demand appears to be approaching a major inflection point. Rabobank research projects that power consumption could climb 20% by 2030 -- a dramatic shift for a grid accustomed to nearly flat annual growth of around 0.5%.
For investors, surging power demand shifts focus to the energy sector, from steady utility providers to power generators and companies supplying critical grid equipment. Here are the stocks that stand to benefit from rising electricity demand.
Image source: Getty Images.
What's driving such strong power demand
Growing demand from AI hyperscalers, the electrification of the power grid (think electric vehicles), and the reindustrialization of manufacturing could drive strong growth in U.S. electricity demand over the next decade.
Growing power demand will ripple through the economy. Regulated utilities should benefit from surging peak demand, which will encourage investment in substations, high-voltage lines, and power plants. As these utilities invest more in infrastructure, their earnings should grow as their rate base expands.
Regulated utilities, especially those in the fast-growing regions with data centers, should see solid growth. Companies like Dominion Energy (D -0.31%), Southern Company (SO -0.99%), and American Electric Power (AEP -0.73%) stand to benefit. Regulated utilities offer less upside exposure to rising power demand, but their stability makes them ideal for conservative investors or those seeking reliable dividends.
SO Southern Company$92.89-$0.93 (-0.99%)
NYSE · As of 4:00 PM ET 10/23/26
Independent power producers capture more upside compared to regulated utilities
Beyond regulated utilities are independent power producers. These companies own power-producing assets, such as nuclear power plants, and sell electricity to companies through long-term power purchase agreements and into spot markets. Because they aren't regulated utilities, they can capture more upside from rising electricity prices.
Companies like Constellation Energy (CEG -0.69%), Vistra (VST -0.48%), and Talen Energy (TLN -1.06%) are all merchant power producers that have locked in long-term agreements with hyperscalers. Earlier this month, Constellation signed a 20-year power purchase agreement with Alphabet. It also has deals with Amazon, Microsoft, and Walmart. Amazon also has PPA agreements with Vistra and Talen.
CEG Constellation Energy$253.45-$1.76 (-0.69%)
NASDAQ · As of 4:00 PM ET 10/23/26
Don't overlook power equipment manufacturers
Finally, power equipment providers are seeing historical demand for their products. These companies benefit because they can get data centers powered and operating in months, not years.
GE Vernova (GEV -1.50%), which manufactures gas turbines and other power equipment, has a massive backlog of over $176 billion. Meanwhile, the narrative around Bloom Energy (BE -11.24%) has shifted dramatically in recent years, as the company has seen incredibly strong demand for its solid-oxide fuel cells.
GEV GE Vernova$815.00-$12.42 (-1.50%)
NYSE · As of 4:00 PM ET 10/23/26
These companies offer diversified upside from the growing demand for power
Power demand is set to grow rapidly over the next decade, and the market is rewarding companies that can meet that demand quickly. If you're a conservative investor seeking income while still getting in on the trend, regulated utilities like Southern Company offer stable upside.
If you're more aggressive and don't mind the risk, independent power producers like Constellation and Vistra are appealing, and both are down 30% and 22% over the past year. If you want to play the power boom from the equipment angle, manufacturers like GE Vernova and Bloom Energy offer another attractive way to capture upside from the growing need for power.
Courtney Carlsen has positions in Alphabet, Bloom Energy, Constellation Energy, GE Vernova, Microsoft, and Vistra. The Motley Fool has positions in and recommends Alphabet, Amazon, Bloom Energy, Constellation Energy, GE Vernova, Microsoft, Talen Energy, Vistra, and Walmart. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy.
GE Vernova (GEV - Free Report) closed at $815.00 in the latest trading session, marking a -1.5% move from the prior day. This change lagged the S&P 500's daily loss of 0.52%. Meanwhile, the Dow experienced a drop of 1.24%, and the technology-dominated Nasdaq saw a decrease of 0.21%.
Heading into today, shares of the the energy business spun off from General Electric had lost 13.36% over the past month, lagging the Oils-Energy sector's gain of 5.63% and the S&P 500's loss of 1.21%.
Market participants will be closely following the financial results of GE Vernova in its upcoming release. The company plans to announce its earnings on October 28, 2026. The company's earnings per share (EPS) are projected to be $4.03, reflecting a 145.73% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $12.1 billion, indicating a 21.39% growth compared to the corresponding quarter of the prior year.
GEV's full-year Zacks Consensus Estimates are calling for earnings of $30.5 per share and revenue of $46.32 billion. These results would represent year-over-year changes of +72.41% and +21.66%, respectively.
Any recent changes to analyst estimates for GE Vernova should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.12% upward. GE Vernova is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that GE Vernova has a Forward P/E ratio of 27.13 right now. This expresses a premium compared to the average Forward P/E of 16.95 of its industry.
It's also important to note that GEV currently trades at a PEG ratio of 1.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Alternative Energy - Other stocks are, on average, holding a PEG ratio of 1.87 based on yesterday's closing prices.
The Alternative Energy - Other industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 152, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Wall Street analysts forecast that GE Vernova (GEV - Free Report) will report quarterly earnings of $4.03 per share in its upcoming release, pointing to a year-over-year increase of 145.7%. It is anticipated that revenues will amount to $12.1 billion, exhibiting an increase of 21.4% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has undergone a downward revision of 3.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain GE Vernova metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts' assessment points toward 'Revenues- Wind' reaching $2.33 billion. The estimate points to a change of -11.9% from the year-ago quarter.
The average prediction of analysts places 'Revenues- Wind- Services' at $466.86 million. The estimate points to a change of +5.2% from the year-ago quarter.
Analysts predict that the 'Revenues- Wind- Equipment' will reach $1.87 billion. The estimate indicates a year-over-year change of -15%.
Analysts expect 'Revenues- Power' to come in at $5.74 billion. The estimate suggests a change of +18.6% year over year.
It is projected by analysts that the 'Revenues- Electrification' will reach $4.01 billion. The estimate indicates a change of +54.1% from the prior-year quarter.
Analysts forecast 'Revenues- Power- Services' to reach $3.48 billion. The estimate indicates a year-over-year change of +12.8%.
The consensus estimate for 'Revenues- Power- Equipment' stands at $2.26 billion. The estimate points to a change of +35.2% from the year-ago quarter.
The consensus among analysts is that 'Revenues- Electrification- Equipment' will reach $3.20 billion. The estimate indicates a change of +58.6% from the prior-year quarter.
According to the collective judgment of analysts, 'Revenues- Wind- Offshore Wind' should come in at $257.78 million. The estimate indicates a change of +32.2% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenues- Wind- Onshore Wind' will likely reach $2.08 billion. The estimate points to a change of -13.6% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- Power- Gas Power' of $4.84 billion. The estimate points to a change of +23.4% from the year-ago quarter.
Based on the collective assessment of analysts, 'Power - Gas Turbine Gigawatts' should arrive at N/A. Compared to the current estimate, the company reported N/A in the same quarter of the previous year.
View all Key Company Metrics for GE Vernova here>>>
Shares of GE Vernova have experienced a change of -13.4% in the past month compared to the -1.2% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), GEV is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
CMH Wealth Management LLC raised its holdings in shares of GE Vernova Inc. (NYSE: GEV) by 6.2% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 10,485 shares of the company's stock after purchasing an additional 614 shares during the quarter.
Key Takeaways GE Vernova secured a 372-MW gas turbine order in Cote d'Ivoire, creating equipment and service opportunities.PEG targets $24-$28 billion in capital spending for 2026-2030, mostly for regulated investments.Both companies face growing electricity demand from data centers, electrification and grid modernization. GE Vernova (GEV - Free Report) and Public Service Enterprise Group (PEG - Free Report) are well positioned to capitalize on the growing need for electricity and investments in power infrastructure. The increasing adoption of electric vehicles, electrification of industrial operations, expansion of data centers, and rising reliance on digital technologies are driving electricity consumption, creating opportunities for power-equipment manufacturers and utility providers.
Both companies are benefiting from structural changes in the energy sector. The rapid expansion of artificial intelligence and data centers is boosting demand for reliable power, while the transition toward cleaner energy sources and the need to modernize aging transmission and distribution networks are accelerating investments across the industry.
GE Vernova stands to benefit from growing demand for power-generation equipment, grid technologies and related services, while Public Service Enterprise is poised to gain from investments in its regulated utility infrastructure, supporting sustained earnings growth under an established regulatory framework.
Against this backdrop, comparing the two companies' financial performance, growth prospects, valuation metrics and earnings outlook can help determine which stock offers the more attractive investment opportunity at present.
Factors Acting in Favor of GEV StockGE Vernova has a balanced investment profile. Demand is supported by a broad electricity cycle tied to grid upgrades, electrification, data centers, reliability and energy security, giving the company better revenue visibility than a typical equipment supplier. Power remains the clearest strength, aided by gas turbine demand, pricing, capacity expansion and future service opportunities.
On Oct. 20, 2026, GE Vernova announced that it had secured an order from Songon Energies S.A. to supply a 9E gas turbine and generator for the 372-MW Songon combined-cycle power plant near Abidjan, Côte d’Ivoire, with the facility expected to begin operations in 2029. The project will also provide opportunities for GE Vernova to supply high-voltage substation equipment, digital software and long-term services. The contract could benefit GE Vernova by strengthening its Gas Power business, expanding its presence in West Africa and generating additional revenue opportunities from equipment, digital solutions and recurring service agreements over the project's lifecycle.
Factors Acting in Favor of PEG StockPublic Service Enterprise is a regulated utility that owns and operates electric transmission and distribution networks, primarily in New Jersey. Rather than selling equipment, the company invests directly in utility infrastructure, including transmission lines, substations, grid reliability projects and clean-energy initiatives. Because many of these investments are made within a regulated framework, PSEG typically earns a predictable return approved by regulators, providing relatively stable cash flows and earnings growth.
The company’s investment plan remains centered on regulated infrastructure, which provides a clear path for rate-base expansion. For 2026-2030, PSEG continues to target $24-$28 billion of total capital spending, with more than 90% directed to regulated investments. The $22.5-$25.5 billion regulated program is expected to support 6-7.5% compound annual growth in rate base through 2030. PSEG expects to fund the five-year capital plan without issuing new equity or selling assets, limiting dilution while preserving capacity for continued dividend growth.
How Do Zacks Estimates Compare for GEV & PEG?The Zacks Consensus Estimate for GE Vernova’s 2026 earnings per share (EPS) indicates growth of 72.41% year over year. GEV’s long-term (three to five years) earnings growth rate is 19.21%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Public Service Enterprise’s 2026 EPS implies growth of 8.15%. PEG’s long-term earnings growth rate is 6.09%.
Image Source: Zacks Investment Research
Valuation for GEV & PEGGEV shares trade at a forward 12-month price/sales (P/S F12M) of 4.26X compared with PEG’s 2.79X.
Image Source: Zacks Investment Research
GEV & PEG’s Return on Equity (ROE)ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. GE Vernova’s current ROE is 42.42% compared with Public Service Enterprise’s 12.42%.
GEV & PEG’s Price PerformanceIn the past year, shares of GE Vernova have risen 39% while those of Public Service Enterprise have declined 12.1%.
Image Source: Zacks Investment Research
GEV or PEG: Which Is a Better Choice Now?GE Vernova benefits from rising electricity demand, grid modernization and strong gas turbine demand, with new international orders creating opportunities in equipment, digital solutions and long-term services. PSEG offers stable earnings growth through regulated utility investments, expanding grid infrastructure and a long-term capital plan focused on predictable returns and sustained dividend growth.
Our choice at the moment is GE Vernova, given its stronger ROE, and better earnings growth and price performance than Public Service Enterprise. Both GEV and PEG carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The global wind power market is expected to grow steadily, driven by supportive government policies, decarbonization efforts, energy security concerns and advancements in turbine technology. Meanwhile, rising electric vehicle adoption, declining battery costs and government incentives are boosting demand for clean energy and charging infrastructure. However, higher interest rates pose challenges for capital-intensive renewable energy projects by increasing borrowing costs, pressuring margins and potentially delaying investments. The forerunners in the U.S. alternative energy industry are GE Vernova Inc. (GEV - Free Report) , Constellation Energy Corporation (CEG - Free Report) and Montauk Renewables (MNTK - Free Report) .
About the Industry The Zacks Alternative Energy - Other industry can be fundamentally segregated into two sets of companies. While one group is involved in the generation and distribution of alternative energy and electricity from sources like wind, natural gas, biofuel, hydro and geothermal, the other is engaged in the development, design and installation of renewable projects involving these alternative energy sources. The industry comprises a handful of companies offering fuel cell energy solutions, which have recently gained traction as affordable and cleaner energy alternatives. According to the International Energy Agency, global energy investments are likely to reach $3.4 trillion in 2026. Such investments provide strong growth opportunities for industry participants.
3 Trends Shaping the Future of the Alternative Energy Industry Wind Power Market Poised for Sustained Growth: The global wind power market continues to expand, driven by supportive government policies for renewable energy, rising focus on decarbonization and energy security, and improving cost competitiveness. Technological advancements, particularly the development of larger and more efficient turbines, are helping wind farms generate more electricity from existing sites while reducing production costs and enhancing project profitability. These factors are expected to drive sustained growth in the industry over the long term. According to a Mordor Intelligence report, the United States Wind Energy Market size was valued at 161.20 GW in 2025 and is estimated to grow from 167.92 GW in 2026 to 205.93 GW by 2031, at a CAGR of 4.17% during the period.
EV Market Surge to Accelerate Clean Energy Adoption: Electric vehicle (EV) companies and charging networks are increasingly using renewable energy sources like solar and wind to power vehicles, reducing fossil fuel usage and emissions. EV adoption is being supported by governments, especially the U.S. government, via subsidies, tax credits, grants and non-cash incentives. Another key driver is the steady decline in battery costs, which lowers the overall price of EVs and makes them more competitive with gasoline-powered cars. These factors have contributed to strong global sales growth. According to a Benchmark Mineral Intelligence report, nearly 2.15 million EVs were sold globally in September 2026, bringing year-to-date 2026 EV sales to 15.5 million. Per a report by Grand View Research, the global EV market size is projected to grow from $2.4 trillion in 2026 to $12.6 trillion by 2033, at a CAGR of 26.7% during the period. This strong growth outlook benefits clean energy companies, particularly those that operate large EV charging networks in the United States, as rising EV adoption directly increases demand for charging infrastructure and its related services.
Higher Interest Rates Pose Challenges for Alternative Energy Growth: The Federal Reserve’s September 2026 interest rate hike, which raised the federal fund target range to 3.75-4.00%, has increased financing concerns for the alternative energy sector. Since renewable energy projects require substantial upfront capital and often depend on debt financing, higher borrowing costs can weaken project economics, pressure profit margins and delay new investments. Capital-intensive technologies such as offshore wind, carbon capture and low-carbon hydrogen may face greater challenges due to their financial and execution risks. Even established renewable energy operators with long-term power purchase agreements may struggle to offset rising financing expenses when electricity prices are contractually fixed, potentially limiting cash flows, distributions and future growth.
Zacks Industry Rank Reflects Gloomy Outlook The Zacks Alternative Energy industry is housed within the broader Zacks Oils-Energy sector. It carries a Zacks Industry Rank #152, which places it in the bottom 38% of more than 247 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Ranks of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the bottom 50% of the Zacks-ranked industries is due to a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts have lost confidence in this group’s earnings growth potential over the past few months. The industry’s bottom-line estimate for the current fiscal year has moved down 8.9% to $2.44 since July 31.
Before we present a few alternative energy stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation.
Industry Lags S&P 500 & Sector The Zacks Alternative Energy- Other Industry has underperformed the Zacks S&P 500 and its sector over the past year. The stocks in this industry have collectively declined 8.3% in the past year against the Zacks Oil-Energy sector’s 41.4% growth. The Zacks S&P 500 composite has gained 15.8% in the same time frame.
One-Year Price Performance
Industry's Current Valuation On the basis of the trailing 12-month EV/EBITDA ratio, which is commonly used for valuing alternative energy stocks, the industry is currently trading at 19.22X compared with the S&P 500’s 18.00X and the sector’s 6.38X.
Over the past five years, the industry has traded as high as 26.77X, as low as 9.93X and at the median of 15.38X.
EV-EBITDA Ratio (TTM)
3 Alternative Energy Stocks to Watch Montauk Renewables: Based in Pittsburgh, PA, the company is a fully integrated renewable energy company. MNTK specializes in the management, recovery and conversion of biogas into renewable energy. Its second-quarter Adjusted EBITDA increased 144.5% to $12.3 million, while renewable natural gas (RNG) production grew 3% to 1.5 million MMBtu and renewable identification numbers (RINs) sold rose 29.1% to 14.3 million. The company also began generating electricity at its Turkey, NC, facility in July and continued expanding feedstock collection agreements with farms, supporting potential future growth.
The Zacks Consensus Estimate for Montauk Renewables’ 2026 sales implies an improvement of 20.8% year over year. The consensus estimate for 2026 earnings suggests an increase of 1,100% year over year. The company currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Price & Consensus: MNTK
Constellation Energy: Based in Baltimore, MD, the company produces and sells electric power, natural gas and energy management services. It serves customers nationwide through its competitive retail platform. Constellation Energy is among the lowest carbon emitters of U.S. investor-owned generators. Its strategy is built around the nation’s largest carbon-free nuclear fleet, complemented by natural gas, oil, geothermal, hydro, wind and solar resources. On Oct. 6, 2026, CEG announced a long-term agreement with Google to add 890 MW of new nuclear capacity to the PJM grid through upgrades at 11 existing nuclear units across Illinois, Pennsylvania and New Jersey. The companies also signed a separate 15-year agreement covering an additional 2,700 MW of power supply within PJM and expanded their technology partnership to deploy Google Cloud and Gemini Enterprise for AI-driven energy operations.
The Zacks Consensus Estimate for Constellation Energy’s 2026 sales implies an improvement of 39.5% year over year. The Zacks Consensus Estimate for 2026 earnings suggests an improvement of 29.6% year over year. The company currently carries a Zacks Rank #3 (Hold).
Price & Consensus: CEG
GE Vernova: Based Cambridge, MA, the company is a global electric power company. It designs, manufactures, delivers, and services technologies that generate, transfer, orchestrate, convert and store electricity. On Oct. 20, 2026, GE Vernova announced that it has secured an order from Songon Energies S.A. to supply a 9E gas turbine and generator for the 372-MW Songon combined-cycle power plant near Abidjan, Côte d’Ivoire, with the facility expected to begin operations in 2029. The project will also provide opportunities for GE Vernova to supply high-voltage substation equipment, digital software and long-term services. The contract could benefit GE Vernova by strengthening its Gas Power business, expanding its presence in West Africa and generating additional revenue opportunities from equipment, digital solutions and recurring service agreements over the project's lifecycle.
The Zacks Consensus Estimate for the company’s 2026 sales implies an improvement of 21.7% year over year. The consensus estimate for 2026 earnings suggests 72.4% growth year over year. The company currently has a Zacks Rank #3.
Cadinha & Co. LLC lowered its position in shares of GE Vernova Inc. (NYSE:GEV – Free Report) by 5.6% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 21,940 shares of the company’s stock after selling 1,296 shares during the period. GE Vernova makes up approximately 3.4% of Cadinha & Co. LLC’s portfolio, making the stock its 13th largest position. Cadinha & Co. LLC’s holdings in GE Vernova were worth $20,854,000 at the end of the most recent quarter.
Other hedge funds also recently added to or reduced their stakes in the company. Onyx Bridge Wealth Group LLC lifted its position in GE Vernova by 1.3% in the 1st quarter. Onyx Bridge Wealth Group LLC now owns 727 shares of the company’s stock valued at $635,000 after acquiring an additional 9 shares in the last quarter. Red Door Wealth Management LLC increased its holdings in shares of GE Vernova by 0.6% in the 1st quarter. Red Door Wealth Management LLC now owns 1,774 shares of the company’s stock worth $1,548,000 after purchasing an additional 10 shares in the last quarter. Advance Capital Management Inc. raised its stake in shares of GE Vernova by 2.2% in the first quarter. Advance Capital Management Inc. now owns 461 shares of the company’s stock worth $402,000 after purchasing an additional 10 shares during the last quarter. Alpha Financial Partners LLC raised its stake in shares of GE Vernova by 2.0% in the first quarter. Alpha Financial Partners LLC now owns 514 shares of the company’s stock worth $449,000 after purchasing an additional 10 shares during the last quarter. Finally, Sandy Cove Advisors LLC lifted its holdings in shares of GE Vernova by 2.6% during the second quarter. Sandy Cove Advisors LLC now owns 389 shares of the company’s stock valued at $457,000 after purchasing an additional 10 shares in the last quarter.
GE Vernova Trading Down 10.9% GE Vernova stock opened at $825.32 on Friday. GE Vernova Inc. has a 52-week low of $530.16 and a 52-week high of $1,195.94. The company has a market cap of $219.81 billion, a P/E ratio of 23.62, a P/E/G ratio of 3.21 and a beta of 1.14. The company has a quick ratio of 0.62, a current ratio of 0.85 and a debt-to-equity ratio of 0.21. The business has a 50-day simple moving average of $952.05 and a two-hundred day simple moving average of $1,002.28.
GE Vernova (NYSE:GEV – Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The company reported $2.47 earnings per share for the quarter, missing the consensus estimate of $3.17 by ($0.70). GE Vernova had a return on equity of 42.42% and a net margin of 23.03%. The business had revenue of $11.10 billion during the quarter, compared to the consensus estimate of $10.79 billion. During the same quarter last year, the company earned $1.86 EPS. GE Vernova’s revenue for the quarter was up 21.9% on a year-over-year basis. Analysts predict that GE Vernova Inc. will post 15.04 EPS for the current year. GE Vernova Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 24th. Investors of record on Tuesday, October 27th will be given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 0.2%. The ex-dividend date is Tuesday, October 27th. GE Vernova’s payout ratio is 5.72%.
Analyst Upgrades and Downgrades A number of research analysts have recently issued reports on GEV shares. Weiss Ratings reaffirmed a “buy (b)” rating on shares of GE Vernova in a report on Monday. Wall Street Zen downgraded GE Vernova from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. Evercore reissued an “outperform” rating and issued a $1,350.00 target price on shares of GE Vernova in a research report on Thursday, October 1st. JPMorgan Chase & Co. lowered their target price on shares of GE Vernova from $1,330.00 to $1,150.00 and set an “overweight” rating on the stock in a research note on Friday, October 9th. Finally, BNP Paribas Exane dropped their price target on shares of GE Vernova from $1,190.00 to $1,090.00 and set a “neutral” rating on the stock in a report on Thursday, August 20th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,164.87.
View Our Latest Analysis on GEV
Key Stories Impacting GE Vernova Here are the key news stories impacting GE Vernova this week:
Positive Sentiment: Venture Global signed power agreements with GE Vernova and Baker Hughes to support LNG expansion and potentially enable as much as 10 gigawatts of data-center capacity by 2034, reinforcing long-term demand for GEV’s equipment. VG Inks Power Agreements With GEV, BKR to Support LNG Growth Positive Sentiment: GE Vernova’s backlog has reportedly reached $176 billion and could approach $200 billion in early 2027. Recurring revenue and potential margin expansion provide visibility into future growth. GE Vernova’s $176 Billion Backlog, Explained Positive Sentiment: Bank of America Securities initiated or reiterated a Buy rating, while analysts continue to anticipate earnings growth ahead of the upcoming quarterly report. GE Vernova Gets a Buy from Bank of America Securities Neutral Sentiment: GE Vernova outlined grid upgrades, energy storage and reliable generation as key requirements for Spain’s net-zero electricity goals, highlighting potential strategic demand but not announcing a specific near-term contract. GE Vernova Highlights Spain’s Path to Reliable, Net-Zero Electricity Negative Sentiment: Meta’s increased AI-spending outlook has raised concerns about how the buildout will be financed. Those worries are weighing on power-equipment suppliers, including GE Vernova, as investors question whether data-center demand can be sustained without project delays or spending reductions. GE Vernova Slumps as Meta’s Spending Outlook Stokes AI Financing Worries Negative Sentiment: Recent commentary also flags valuation risk, profit-taking, tariffs and project delays. With GEV trading well below its 52-week high but still at a premium earnings multiple, investors may be particularly sensitive to any slowdown in AI-related capital expenditure. GE Vernova Profile (Free Report)
GE Vernova Inc (NYSE: GEV) is an energy technology company focused on helping generate, transmit, store and deliver electricity. The company serves utilities, power producers, grid operators, commercial and industrial customers, and other energy-sector participants worldwide.
Its business is organized around three primary areas: Power, Wind and Electrification. Power provides technologies and services for gas and steam power generation, hydropower, nuclear power and other energy systems.
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GE Vernova is connecting grid and compute models as investors sharply reduce AI-power expectations.
Summary
The AI-grid opportunity remains intact, but today’s selloff resets execution expectations.
Power and grid-equipment manufacturer GE Vernova GEV is extending its digital-twin capabilities across power systems and AI factories, aligning with NVIDIA's DSX architecture. Shares fell 10.43% to $829.31 at 11:25 a.m. ET Thursday. The collaboration targets a costly problem: coordinating electricity supply and computing demand before construction begins. NVIDIA announced the initiative in March, so it does not establish a fresh explanation for Thursday's selloff.
The demand story still has muscle. GE Vernova reported a $176 billion backlog at the end of the second quarter, with data-center orders exceeding $5 billion in the first half—more than twice its full-year 2025 total. But orders are only the starting line. According to Reuters' second-quarter coverage, widening Wind losses weighed on results despite growth in Power and Electrification. Turning demand into profitable deliveries remains the test.
The valuation snapshot shows a 23.74 price-to-earnings ratio alongside a GF Score of just 17/100, a reminder that one earnings multiple cannot capture the full investment picture. Digital twins could help customers catch design problems earlier. They cannot manufacture turbines, deliver transformers or secure grid connections by themselves. For investors, the next proof point is execution: converting that enormous backlog into revenue, cash and stronger margins.
Disclosures
I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
GE Vernova (GEV - Free Report) has recently been on Zacks.com's 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.
Shares of this the energy business spun off from General Electric have returned -2.7% over the past month versus the Zacks S&P 500 composite's no change. The Zacks Alternative Energy - Other industry, to which GE Vernova belongs, has lost 4.4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
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.
For the current quarter, GE Vernova is expected to post earnings of $4.03 per share, indicating a change of +145.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.3% over the last 30 days.
The consensus earnings estimate of $30.5 for the current fiscal year indicates a year-over-year change of +72.4%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $24.12 indicates a change of -20.9% from what GE Vernova is expected to report a year ago. Over the past month, the estimate has changed +0.2%.
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:
12 Month EPS
Projected Revenue GrowthWhile 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.
In the case of GE Vernova, the consensus sales estimate of $12.1 billion for the current quarter points to a year-over-year change of +21.4%. The $46.32 billion and $52.95 billion estimates for the current and next fiscal years indicate changes of +21.7% and +14.3%, respectively.
Last Reported Results and Surprise HistoryGE Vernova reported revenues of $11.1 billion in the last reported quarter, representing a year-over-year change of +21.9%. EPS of $2.47 for the same period compares with $1.86 a year ago.
Compared to the Zacks Consensus Estimate of $10.77 billion, the reported revenues represent a surprise of +3.12%. The EPS surprise was -22.08%.
Over the last four quarters, GE Vernova surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it 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.
Bottom LineThe facts discussed here and much other information on Zacks.com 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.
Diversify Advisory Services LLC lifted its position in shares of GE Vernova Inc. (NYSE:GEV – Free Report) by 9.5% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 9,665 shares of the company’s stock after buying an additional 840 shares during the period. Diversify Advisory Services LLC’s holdings in GE Vernova were worth $8,954,000 at the end of the most recent quarter.
A number of other hedge funds have also modified their holdings of GEV. Onyx Bridge Wealth Group LLC boosted its position in GE Vernova by 1.3% during the 1st quarter. Onyx Bridge Wealth Group LLC now owns 727 shares of the company’s stock worth $635,000 after acquiring an additional 9 shares during the last quarter. Red Door Wealth Management LLC grew its stake in shares of GE Vernova by 0.6% during the 1st quarter. Red Door Wealth Management LLC now owns 1,774 shares of the company’s stock worth $1,548,000 after acquiring an additional 10 shares in the last quarter. Advance Capital Management Inc. raised its holdings in shares of GE Vernova by 2.2% in the first quarter. Advance Capital Management Inc. now owns 461 shares of the company’s stock valued at $402,000 after purchasing an additional 10 shares during the last quarter. Alpha Financial Partners LLC raised its holdings in shares of GE Vernova by 2.0% in the first quarter. Alpha Financial Partners LLC now owns 514 shares of the company’s stock valued at $449,000 after purchasing an additional 10 shares during the last quarter. Finally, Sandy Cove Advisors LLC raised its holdings in shares of GE Vernova by 2.6% in the second quarter. Sandy Cove Advisors LLC now owns 389 shares of the company’s stock valued at $457,000 after purchasing an additional 10 shares during the last quarter.
GE Vernova Stock Up 4.2% GEV stock opened at $927.29 on Thursday. The company has a market cap of $246.97 billion, a price-to-earnings ratio of 26.54, a P/E/G ratio of 3.08 and a beta of 1.14. GE Vernova Inc. has a twelve month low of $530.16 and a twelve month high of $1,195.94. The business has a 50 day moving average price of $956.51 and a two-hundred day moving average price of $1,002.79. The company has a quick ratio of 0.62, a current ratio of 0.85 and a debt-to-equity ratio of 0.21.
GE Vernova (NYSE:GEV – Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The company reported $2.47 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.17 by ($0.70). The company had revenue of $11.10 billion for the quarter, compared to the consensus estimate of $10.79 billion. GE Vernova had a return on equity of 42.42% and a net margin of 23.03%. The company’s revenue for the quarter was up 21.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.86 EPS. Analysts anticipate that GE Vernova Inc. will post 15.04 EPS for the current fiscal year. GE Vernova Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 24th. Investors of record on Tuesday, October 27th will be paid a $0.50 dividend. The ex-dividend date of this dividend is Tuesday, October 27th. This represents a $2.00 annualized dividend and a dividend yield of 0.2%. GE Vernova’s dividend payout ratio (DPR) is currently 5.72%.
More GE Vernova News Here are the key news stories impacting GE Vernova this week:
Positive Sentiment: Large backlog supports long-term growth. GE Vernova’s backlog has reportedly reached $176 billion and could approach $200 billion in early 2027. Recurring revenue and expected margin expansion may provide greater earnings visibility. GE Vernova’s $176 Billion Backlog, Explained Positive Sentiment: New LNG-related agreements reinforce demand. Venture Global signed power agreements with GE Vernova and Baker Hughes to support LNG expansion, with the projects potentially enabling as much as 10 gigawatts of data-center capacity by 2034. VG Inks Power Agreements With GEV, BKR to Support LNG Growth Positive Sentiment: International orders add to its project pipeline. GE Vernova secured an order intended to strengthen regional electricity capacity in Côte d’Ivoire, supporting its positioning in emerging energy markets. GE Vernova Secures Côte d’Ivoire Order Positive Sentiment: Earnings expectations are supportive. Analysts and Zacks expect earnings growth and identify factors that could produce an earnings beat in the upcoming report, helping improve sentiment ahead of results. GE Vernova Earnings Expected to Grow Neutral Sentiment: Spain strategy highlights structural opportunity. GE Vernova outlined four pathways for Spain to achieve reliable, net-zero electricity by 2050, emphasizing grid upgrades, energy storage, and dependable generation. The announcement is strategically positive but does not disclose a specific contract or financial impact. GE Vernova Highlights Spain’s Path to Reliable, Net-Zero Electricity Negative Sentiment: Recent weakness reflected profit-taking. A fund commentary described a third-quarter pullback as profit-taking despite sustained AI-related capital-spending demand. The stock also declined in the prior session, underscoring elevated volatility and the risk of further pressure if earnings or guidance disappoint. GE Vernova’s Q3 Pullback Reflects Profit-Taking Wall Street Analysts Forecast Growth A number of brokerages have recently commented on GEV. Jefferies Financial Group reissued a “buy” rating and issued a $1,185.00 price objective (up from $1,155.00) on shares of GE Vernova in a research report on Thursday, September 17th. Susquehanna decreased their target price on shares of GE Vernova from $1,300.00 to $1,270.00 and set a “positive” rating for the company in a research report on Wednesday, October 14th. Glj Research began coverage on shares of GE Vernova in a research note on Monday, September 14th. They issued a “sell” rating and a $470.00 price target on the stock. Wall Street Zen lowered shares of GE Vernova from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Finally, President Capital boosted their price target on shares of GE Vernova from $1,368.00 to $1,398.00 and gave the stock a “buy” rating in a research report on Wednesday, July 29th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $1,164.87.
Get Our Latest Stock Analysis on GE Vernova
About GE Vernova (Free Report)
GE Vernova Inc (NYSE: GEV) is an energy technology company focused on helping generate, transmit, store and deliver electricity. The company serves utilities, power producers, grid operators, commercial and industrial customers, and other energy-sector participants worldwide.
Its business is organized around three primary areas: Power, Wind and Electrification. Power provides technologies and services for gas and steam power generation, hydropower, nuclear power and other energy systems.
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Bender Robert & Associates boosted its holdings in GE Vernova Inc. (NYSE:GEV – Free Report) by 6.2% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 11,235 shares of the company’s stock after purchasing an additional 658 shares during the quarter. GE Vernova comprises 2.1% of Bender Robert & Associates’ investment portfolio, making the stock its 15th largest holding. Bender Robert & Associates’ holdings in GE Vernova were worth $10,679,000 as of its most recent SEC filing.
A number of other large investors have also recently bought and sold shares of GEV. Parvin Asset Management LLC purchased a new stake in shares of GE Vernova in the second quarter valued at about $32,000. Pingora Partners LLC acquired a new stake in shares of GE Vernova during the second quarter worth about $36,000. Manning & Napier Advisors LLC grew its holdings in shares of GE Vernova by 68.4% during the first quarter. Manning & Napier Advisors LLC now owns 32 shares of the company’s stock worth $26,000 after buying an additional 13 shares during the last quarter. IMG Wealth Management Inc. purchased a new position in shares of GE Vernova during the second quarter worth about $39,000. Finally, Miller Global Investments LLC grew its holdings in shares of GE Vernova by 63.6% during the second quarter. Miller Global Investments LLC now owns 36 shares of the company’s stock worth $42,000 after buying an additional 14 shares during the last quarter.
Analyst Ratings Changes Several research firms have commented on GEV. Royal Bank Of Canada upped their price objective on GE Vernova from $1,195.00 to $1,225.00 and gave the company an “outperform” rating in a research note on Thursday, July 23rd. President Capital lifted their target price on GE Vernova from $1,368.00 to $1,398.00 and gave the company a “buy” rating in a research note on Wednesday, July 29th. Glj Research assumed coverage on GE Vernova in a report on Monday, September 14th. They issued a “sell” rating and a $470.00 target price on the stock. Guggenheim restated a “buy” rating and set a $1,450.00 price target on shares of GE Vernova in a research note on Tuesday, October 13th. Finally, Evercore reaffirmed an “outperform” rating and set a $1,350.00 price target on shares of GE Vernova in a report on Thursday, October 1st. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, GE Vernova currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,164.87.
Read Our Latest Stock Report on GEV GE Vernova Stock Up 4.2% GE Vernova stock opened at $927.29 on Thursday. The stock’s 50 day moving average price is $956.51 and its 200 day moving average price is $1,002.79. GE Vernova Inc. has a 1-year low of $530.16 and a 1-year high of $1,195.94. The company has a market cap of $246.97 billion, a PE ratio of 26.54, a price-to-earnings-growth ratio of 3.08 and a beta of 1.14. The company has a debt-to-equity ratio of 0.21, a current ratio of 0.85 and a quick ratio of 0.62.
GE Vernova (NYSE:GEV – Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The company reported $2.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.17 by ($0.70). GE Vernova had a return on equity of 42.42% and a net margin of 23.03%. The business had revenue of $11.10 billion during the quarter, compared to analysts’ expectations of $10.79 billion. During the same quarter in the previous year, the company posted $1.86 EPS. The company’s revenue was up 21.9% compared to the same quarter last year. On average, sell-side analysts predict that GE Vernova Inc. will post 15.04 EPS for the current fiscal year.
GE Vernova Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Tuesday, November 24th. Stockholders of record on Tuesday, October 27th will be issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date of this dividend is Tuesday, October 27th. GE Vernova’s payout ratio is 5.72%.
More GE Vernova News Here are the key news stories impacting GE Vernova this week:
Positive Sentiment: Large backlog supports long-term growth. GE Vernova’s backlog has reportedly reached $176 billion and could approach $200 billion in early 2027. Recurring revenue and expected margin expansion may provide greater earnings visibility. GE Vernova’s $176 Billion Backlog, Explained Positive Sentiment: New LNG-related agreements reinforce demand. Venture Global signed power agreements with GE Vernova and Baker Hughes to support LNG expansion, with the projects potentially enabling as much as 10 gigawatts of data-center capacity by 2034. VG Inks Power Agreements With GEV, BKR to Support LNG Growth Positive Sentiment: International orders add to its project pipeline. GE Vernova secured an order intended to strengthen regional electricity capacity in Côte d’Ivoire, supporting its positioning in emerging energy markets. GE Vernova Secures Côte d’Ivoire Order Positive Sentiment: Earnings expectations are supportive. Analysts and Zacks expect earnings growth and identify factors that could produce an earnings beat in the upcoming report, helping improve sentiment ahead of results. GE Vernova Earnings Expected to Grow Neutral Sentiment: Spain strategy highlights structural opportunity. GE Vernova outlined four pathways for Spain to achieve reliable, net-zero electricity by 2050, emphasizing grid upgrades, energy storage, and dependable generation. The announcement is strategically positive but does not disclose a specific contract or financial impact. GE Vernova Highlights Spain’s Path to Reliable, Net-Zero Electricity Negative Sentiment: Recent weakness reflected profit-taking. A fund commentary described a third-quarter pullback as profit-taking despite sustained AI-related capital-spending demand. The stock also declined in the prior session, underscoring elevated volatility and the risk of further pressure if earnings or guidance disappoint. GE Vernova’s Q3 Pullback Reflects Profit-Taking GE Vernova Profile (Free Report)
GE Vernova Inc (NYSE: GEV) is an energy technology company focused on helping generate, transmit, store and deliver electricity. The company serves utilities, power producers, grid operators, commercial and industrial customers, and other energy-sector participants worldwide.
Its business is organized around three primary areas: Power, Wind and Electrification. Power provides technologies and services for gas and steam power generation, hydropower, nuclear power and other energy systems.
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If you've been looking for an all-around industrial holding to add to your portfolio, there's a good chance you've come across GE Vernova (GEV +4.00%). And deservedly so. This company's equipment features prominently in the world's present and future power production. Namely, it manufactures wind turbines, natural gas turbines, and grid management solutions. It's even in the nuclear power business.
Being in the right place at the right time doesn't necessarily make a company's stock a buy, however. GE Vernova shares are up nearly 600% since being spun off from GE Aerospace back in 2024, driven higher by the proliferation of artificial intelligence data centers that, in turn, created an insatiable demand for electricity, however it can be produced. That's a tough act to follow.
Image source: Getty Images.
Don't be dissuaded, though. In fact, while it's been well up over the past two years, this stock's lull since April of this year may be the best buying opportunity you'll see for a while.
$925.92+$35.59 (+4.00%)
NYSE · As of 4:00 PM ET 10/21/26
Can't manufacture it fast enough If you've heard of it at all, it's almost certainly because of GE Vernova's natural gas turbines. Although initially intended for utility-scale power production (and perhaps the occasional installation at a major manufacturing facility), the company's gas turbines are being set up at artificial intelligence data centers as a quick and easy secondary or even primary source of electricity. Although its power division reported revenue growth of only 14% to $5.5 billion, for perspective, this same arm also took $16.7 billion in new orders during Q2 -- up 134% -- mostly due to demand for natural gas turbines.
What is GE Vernova's biggest bottleneck right now? Simply a lack of manufacturing capacity, though the company is addressing this matter.
Don't look past the impressive performance of GE Vernova's other important profit center, though. Its electrification arm, which makes and markets transformers, high-voltage substation equipment, and switchgear, also experienced 68% year-over-year revenue growth to $3.6 billion, while orders grew 93% to more than $6.3 billion. All told, the company's total backlog of business now stands at $176 billion. That's more than three times next year's analyst-expected top line of $53 billion (up 14%), and the backlog keeps growing.
Reliable growth ahead But is this bright future overly dependent on the continued spread of artificial intelligence data centers?
Not necessarily. As Scott Strazik commented during July's Q2 earnings conference call, "for our total gigawatts under contract, demand remains diverse with approximately 100 customers in 26 different countries, of which approximately 80% are traditional customers and 20% are for data centers." Or as the International Energy Agency predicts, global demand for electricity is poised to grow by 3.5% per year through 2030. That's a relatively small number, but it's an enormous one for the power-production industry, which is already operating near maximum capacity.
Connect the dots. Most of this company's past, present, and future growth reflects the world's growing need for power beyond the fickle artificial intelligence industry's need. As such, the bulk of GE Vernova's long-term growth outlook is durable regardless of the economic backdrop.
This might help: The vast majority of analysts rate GEV a strong buy, with a consensus price target of $1,199.47. That's not a bad way to start out a new trade.
GE Vernova (NYSE:GEV – Get Free Report) and XCHG (NASDAQ:XCH – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
Profitability
This table compares GE Vernova and XCHG’s net margins, return on equity and return on assets.
Net Margins
Return on Equity
Return on Assets
GE Vernova
23.03%
42.42%
7.78%
XCHG
N/A
N/A
N/A
Analyst Recommendations
This is a breakdown of current recommendations and price targets for GE Vernova and XCHG, as reported by MarketBeat.
GE Vernova presently has a consensus price target of $1,164.87, suggesting a potential upside of 25.62%. Given GE Vernova’s stronger consensus rating and higher possible upside, analysts clearly believe GE Vernova is more favorable than XCHG.
Volatility & Risk
GE Vernova has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, XCHG has a beta of -1.22, indicating that its share price is 222% less volatile than the S&P 500.
Earnings & Valuation
This table compares GE Vernova and XCHG”s revenue, earnings per share and valuation.
Gross Revenue
Price/Sales Ratio
Net Income
Earnings Per Share
Price/Earnings Ratio
GE Vernova
$38.07 billion
6.49
$4.88 billion
$34.94
26.54
XCHG
$25.10 million
0.30
-$32.50 million
($1.60)
-1.16
GE Vernova has higher revenue and earnings than XCHG. XCHG is trading at a lower price-to-earnings ratio than GE Vernova, indicating that it is currently the more affordable of the two stocks.
Summary
GE Vernova beats XCHG on 13 of the 13 factors compared between the two stocks.
About GE Vernova
(Get Free Report)
GE Vernova LLC, an energy business company, generates electricity. It operates under three segments: Power, Wind, and Electrification. The Power segments generates and sells electricity through hydro, gas, nuclear, and steam power. Wind segment engages in the manufacturing and sale of wind turbine blades; and Electrification segment provides grid solutions, power conversion, solar, and storage solutions. The company was incorporated in 2023 and is based in Cambridge, Massachusetts.
About XCHG
(Get Free Report)
XCHG Limited, branded as XCharge, is a company whose subsidiaries design, manufacture, and sell electric vehicle (EV) charging solutions under the X-Charge name in Europe, China, the United States, and other international markets. The company focuses on DC fast-charging infrastructure, including its C6 and C7 series chargers and Net Zero battery-integrated fast-charging systems, and also provides related software upgrades and hardware maintenance services for EV manufacturers, energy companies, and charge point operators. Founded in 2015, XCHG positions itself as a global provider of integrated EV charging solutions that combine high-power charging with smart energy management.
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GE Vernova (GEV) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Genoa Capital Gestora de Recursos Ltda. bought a new position in shares of GE Vernova Inc. (NYSE:GEV – Free Report) in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 6,717 shares of the company’s stock, valued at approximately $6,384,000. GE Vernova accounts for about 1.4% of Genoa Capital Gestora de Recursos Ltda.’s holdings, making the stock its 5th biggest holding.
Several other hedge funds also recently bought and sold shares of the stock. Parvin Asset Management LLC purchased a new stake in shares of GE Vernova in the 2nd quarter valued at approximately $32,000. Pingora Partners LLC acquired a new position in shares of GE Vernova in the 2nd quarter worth approximately $36,000. Manning & Napier Advisors LLC lifted its holdings in shares of GE Vernova by 68.4% in the 1st quarter. Manning & Napier Advisors LLC now owns 32 shares of the company’s stock worth $26,000 after acquiring an additional 13 shares during the last quarter. IMG Wealth Management Inc. purchased a new position in shares of GE Vernova during the 2nd quarter worth approximately $39,000. Finally, Miller Global Investments LLC boosted its position in shares of GE Vernova by 63.6% during the 2nd quarter. Miller Global Investments LLC now owns 36 shares of the company’s stock worth $42,000 after purchasing an additional 14 shares during the period.
Analysts Set New Price Targets Several research firms recently weighed in on GEV. Weiss Ratings reiterated a “buy (b)” rating on shares of GE Vernova in a report on Monday. Susquehanna cut their target price on GE Vernova from $1,300.00 to $1,270.00 and set a “positive” rating on the stock in a research report on Wednesday, October 14th. BMO Capital Markets reissued an “outperform” rating and issued a $1,250.00 target price (up from $1,110.00) on shares of GE Vernova in a research report on Friday, August 7th. Royal Bank Of Canada upped their price target on GE Vernova from $1,195.00 to $1,225.00 and gave the stock an “outperform” rating in a research note on Thursday, July 23rd. Finally, President Capital raised their price target on GE Vernova from $1,368.00 to $1,398.00 and gave the stock a “buy” rating in a research report on Wednesday, July 29th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $1,164.87.
Read Our Latest Report on GE Vernova GE Vernova Stock Down 2.1% Shares of NYSE:GEV opened at $888.93 on Wednesday. The company has a debt-to-equity ratio of 0.21, a current ratio of 0.85 and a quick ratio of 0.62. The firm has a market capitalization of $236.75 billion, a PE ratio of 25.44, a price-to-earnings-growth ratio of 3.14 and a beta of 1.14. The firm’s 50-day moving average is $958.76 and its two-hundred day moving average is $1,002.59. GE Vernova Inc. has a 1 year low of $530.16 and a 1 year high of $1,195.94.
GE Vernova (NYSE:GEV – Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The company reported $2.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.17 by ($0.70). GE Vernova had a return on equity of 42.42% and a net margin of 23.03%. The business had revenue of $11.10 billion for the quarter, compared to analyst estimates of $10.79 billion. During the same period in the prior year, the company posted $1.86 EPS. The firm’s revenue for the quarter was up 21.9% compared to the same quarter last year. Analysts predict that GE Vernova Inc. will post 15.04 EPS for the current year.
GE Vernova Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 24th. Investors of record on Tuesday, October 27th will be issued a $0.50 dividend. The ex-dividend date is Tuesday, October 27th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.2%. GE Vernova’s payout ratio is 5.72%.
GE Vernova Company Profile (Free Report)
GE Vernova Inc (NYSE: GEV) is an energy technology company focused on helping generate, transmit, store and deliver electricity. The company serves utilities, power producers, grid operators, commercial and industrial customers, and other energy-sector participants worldwide.
Its business is organized around three primary areas: Power, Wind and Electrification. Power provides technologies and services for gas and steam power generation, hydropower, nuclear power and other energy systems.
Read More Five stocks we like better than GE Vernova Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge Want to see what other hedge funds are holding GEV? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for GE Vernova Inc. (NYSE:GEV – Free Report).
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Investors usually view GE Vernova's (GEV -1.99%) backlog as a precursor to future revenue growth, and that approach is entirely valid. However, there's more to this accumulation of unfulfilled customer orders that exceed the company's immediate production capacity than meets the eye.
There's also an underlying story of a significant improvement in the company's potential to generate long-term recurring revenue, notably from long-term service agreements (LTSA) attached to gas turbines and aftermarket parts/repair and software subscriptions in electrical equipment. In addition, there's a margin expansion and cash flow improvement story too.
Image source: Getty Images.
Here's a breakout of the company's remaining performance obligation (RPO), or backlog, over the last few years. A few points are from the data in the chart below:
The chart shows a remarkable increase in backlog from $116 billion in 2023 to $176 billion at the end of the second quarter.
The power and electrification segments contributed 111% of the increase in the backlog, offset by a decrease in the loss-making wind segment.
Data source: GE Vernova presentations. Chart by author.
GE Vernova's backlog improvement is better than it looks
The backlog improvement isn't done yet, at least according to CEO Scott Strazik and Wall Street. For example, Strazik spoke at a Morgan Stanley conference in September and told investors that the $200 billion backlog he had guided toward in 2027 "should hit very early in 2027," based on the third-quarter orders. He also said, "$200 billion is a very humble milestone on the trajectory we see toward growing to a much larger and more profitable business."
Wall Street sees it the same way, with the consensus view, according to S&P Global Market Intelligence, calling for a backlog of $303 billion in 2030 even as its revenue improves at a mid-teens percentage rate as the company converts the backlog.
Moreover, the improvement in the power and electrification segment implies more recurring revenue down the line, as heavy-duty gas turbines are typically sold with LTSAs that generate higher-margin service sales over many years. Similarly, its electrification segment equipment (grid, substation, switchgear, transmission equipment, etc.) also generates long-term revenue from equipment maintenance and software and digital services.
GEV GE Vernova$890.33-$18.11 (-1.99%)
NYSE · As of 4:00 PM ET 10/20/26
Improving margins
Strazik also noted that margins were improving across all three segments' backlogs, which means "margin expansion in our business is simply going to continue" in the years when most of the backlog is executed, in 2029 and 2030.
All three segments have good long-term growth prospects. The power segment's gas turbines and nuclear solutions help supply electricity to artificial intelligence (AI) data centers. Moreover, demand in its electrification segment is partly driven by the need to build out and maintain the grid to support AI data centers.
The improvement in the wind segment is more nuanced: The company is currently working through loss-making offshore wind contracts while prioritizing margin expansion in its onshore wind business and not chasing offshore contracts. These actions should lead to margin improvement in the future.
Improving cash flow
Finally, GE Vernova's cash flow profile is being significantly enhanced by the growth in slot reservation agreements (SRAs), in which customers pay cash up front to secure equipment manufacturing slots in the future. Focusing purely on power, management said at the end of the second quarter that it had 116 gigawatts (GW) under contract, including 63 GW in SRAs (note that SRAs are not included in the RPO or backlog figures).
Moreover, Strazik emphasized in September that "We also see our customers continue to really accelerate their slot reservation agreements into orders, which drove my earlier comment on us continuing to expect a very strong third quarter orders performance."
GE Vernova's backlog will drive growth
All told, a combination of improving up-front cash flow, margin expansion in the backlog, backlog growth, and improved long-term recurring revenue prospects is strengthening GE Vernova's prospects. Moreover, investors can expect to see immediate signs of these improvements in the upcoming earnings presentation due on Oct. 28.
GE Vernova (GEV - Free Report) closed at $890.33 in the latest trading session, marking a -1.99% move from the prior day. This move lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, lost 0.02%.
The stock of the energy business spun off from General Electric has fallen by 3.99% in the past month, lagging the Oils-Energy sector's gain of 6.18% and the S&P 500's gain of 0.67%.
Investors will be eagerly watching for the performance of GE Vernova in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 28, 2026. The company is predicted to post an EPS of $4.03, indicating a 145.73% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $12.1 billion, indicating a 21.39% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $30.5 per share and revenue of $46.32 billion, indicating changes of +72.41% and +21.66%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for GE Vernova. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.12% rise in the Zacks Consensus EPS estimate. GE Vernova currently has a Zacks Rank of #3 (Hold).
In terms of valuation, GE Vernova is presently being traded at a Forward P/E ratio of 29.78. Its industry sports an average Forward P/E of 16.86, so one might conclude that GE Vernova is trading at a premium comparatively.
It is also worth noting that GEV currently has a PEG ratio of 1.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Alternative Energy - Other industry was having an average PEG ratio of 1.93.
The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 34% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
The first purchase order is expected by year-end; contemplated deliveries run from 2028 through 2034. Summary
The opportunity is substantial, but a capacity framework must still convert into equipment orders.
Power-generation and grid-equipment supplier GE Vernova GEV has a fresh opening in the AI power race, but orders still have to follow. Shares traded at $912.75, down 3.08%, at 12:51 p.m. ET on October 15. The framework with Venture Global and Baker Hughes could support electricity supplies for LNG operations and potential nearby data centers. The opportunity is substantial. How much becomes contracted business remains the key question.
Venture Global outlined agreements covering up to 16 power islands, each rated at 720 megawatts, plus associated transformer equipment. Together, that represents 11.52 gigawatts of potential generation capacity. The company expects its first power-island purchase order by year-end 2026, with additional deployments tied to customer commitments and commercial needs. Reuters reported that the planned capacity could serve both AI data centers and LNG operations. Investors should distinguish that capacity ceiling from firm equipment orders.
The GF Score of 17/100 adds a caution flag: the displayed composite offers little support for an investment case built on the power-demand story alone. For shareholders, the next meaningful milestone is a purchase order, followed by evidence of repeat commitments and profitable deliveries. One initial order would move the framework forward. It would not establish demand for all 16 units. GE Vernova's earnings opportunity will depend on how much equipment customers ultimately buy, when it ships and what margins the company earns.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
The ongoing proliferation of artificial intelligence (AI) data centers continues to outpace the availability of electricity to power them, and will do so for a while. That's the latest assessment from analysts at Morgan Stanley, which recently calculated that -- as things stand -- U.S. data centers alone will face a 32-gigawatt electricity shortfall by 2028.
This warning echoes similar ones that have been circulating since shortly after the November 2022 launch of OpenAI's ChatGPT, which set off an AI arms race that's still heating up rather than cooling off. Indeed, globally, Goldman Sachs says demand for power in data centers is set to grow by 170% between last year and 2030, up from a five-year growth estimate of only 117% earlier this year. Much like the United States, the rest of the world isn't ready to meet that need either.
Some companies benefit from this growing electricity shortage, of course, although these investment opportunities are as nuanced and complex as the solution to the power shortfall itself. Here's a framework for how investors might want to view and navigate the matter.
Image source: Getty Images.
Conventional power delivery Utility companies that are already generating electricity are obvious beneficiaries of the movement. Not all are equally positioned to deliver this needed power when and where it's needed, though. The best-positioned names in the power utility business right now are Constellation Energy (CEG -5.49%), NextEra Energy (NEE +0.19%), and Vistra (VST -6.51%), largely because these outfits operate existing nuclear power plants that can be uprated relatively quickly. Constellation operates more nuclear power plants than any other U.S. utility, and nuclear accounts for over 80% of its total power production.
Data center owners/operators have taken notice too. In late 2024, software giant Microsoft convinced Constellation to restart one of the idle nuclear reactors at Three Mile Island in Pennsylvania to generate electricity needed by nearby data centers. And just last week, Google parent Alphabet agreed to purchase power from several of Constellation's nuclear power facilities in Illinois, Pennsylvania, and New Jersey, also to support AI data centers. Operating in the right geography helped, of course.
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That said, Vistra and NextEra Energy are competitively positioned as well. Texas-based Vistra has also recently inked a long-term nuclear power-supply deal with Facebook parent Meta Platforms. Such custom-designed partnerships that support utilities' investments in their own nuclear power plant fleets are quickly becoming the norm.
Onsite power generation That being said, sometimes even custom-built power-purchase partnerships aren't quite the solution that's needed. In an increasing number of instances, AI data center owners/operators are opting to generate their own electricity right where it's needed.
Enter GE Vernova (GEV -6.20%). While this energy-oriented offshoot of the old GE manufactures a range of power-production equipment including wind turbines, hydropower tech, and even nuclear reactor components, its natural gas turbines are its big story right now.
Initially intended for power utility companies, these turbines -- some of which are capable of generating over 571 megawatts' worth of electricity -- are being installed adjacent to data centers as a secondary or even primary source of power. Although not just due to AI-driven demand, this company's backlog now stands at $176 billion versus this year's projected top line of only $46 billion.
Another name worth adding to your artificial intelligence infrastructure watch list is Bloom Energy (BE -9.15%). It's arguably the most unusual of the seven names in focus here simply because it's doing something relatively new that's not been well commercialized by any other outfit. That's facilitating the use of fuel cells as a source of electricity at enough scale to power an entire building.
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In simplest terms, fuel cells convert a gas like hydrogen or natural gas into electricity using an electrochemical process rather than a mechanical or combustion one. While relatively expensive up front, fuel cells have minimal long-term maintenance costs because they have no moving parts.
Bloom Energy also helps curb some of these costs by increasingly offering electricity generation as a service rather than simply selling its equipment. However, most of its second-quarter revenue of just over $1 billion still reflects product sales.
The kicker: Bloom Energy is now firmly profitable, reaching profitability far sooner than many investors thought it might.
Energy management equipment Perhaps the least appreciated opportunity stemming from the rise of AI data centers everywhere is the equipment other than the racks, servers, and processors that go into them. This includes cooling equipment, although the most meaningful leap right now is on the energy management front, with wares manufactured by the likes of Eaton (ETN -4.54%) and Vertiv (VRT -6.09%).
Take Vertiv's EXL S1 uninterruptible power supply as an example. This power distribution tech, capable of handling loads anywhere from 250 kilowatts to 1,200 kilowatts, automatically handles any fluctuations detected in grid-supplied power, keeping AI data centers up and running when they otherwise might be forced to temporarily stop operations.
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Vertiv also offers increasingly popular 800-volt grid-to-chip power infrastructure solutions. This equipment is only about one-tenth as expensive to own and operate as the lower-voltage, higher-amperage equipment commonly used in most AI data centers built so far.
With monthly electricity costs easily reaching hundreds of thousands of dollars, though, data center owners will gladly invest in any improvement in cost-effectiveness. That's why an outlook from Precedence Research suggests the worldwide data center power management equipment market alone is poised to double in size between last year and 2035.
Connecting the dots Other related stocks are worth your consideration. In fact, many of the aforementioned tickers are already more than fully priced based on presumptions about future demand. You may want to wait on a pullback from some of these stocks before diving in.
Just embrace the bigger picture no matter what you decide to do next. There's clearly a lot of opportunity in AI's growth, beyond the chips that handle all of this heavy-duty computing work. These seven stocks are a place to start looking beyond those obvious names, but certainly aren't the only worthy ways to plug into the trend and the subsequent power shortage.
GE Vernova (GEV - Free Report) ended the recent trading session at $941.78, demonstrating a -6.2% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.11% for the day. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1.88%.
Heading into today, shares of the the energy business spun off from General Electric had gained 13.73% over the past month, outpacing the Oils-Energy sector's gain of 4.62% and the S&P 500's gain of 2.06%.
Analysts and investors alike will be keeping a close eye on the performance of GE Vernova in its upcoming earnings disclosure. The company's earnings report is set to go public on October 28, 2026. The company is predicted to post an EPS of $4.03, indicating a 145.73% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $12.1 billion, up 21.39% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $30.5 per share and a revenue of $46.32 billion, representing changes of +72.41% and +21.66%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for GE Vernova. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.12% upward. At present, GE Vernova boasts a Zacks Rank of #3 (Hold).
Investors should also note GE Vernova's current valuation metrics, including its Forward P/E ratio of 32.92. Its industry sports an average Forward P/E of 17.7, so one might conclude that GE Vernova is trading at a premium comparatively.
One should further note that GEV currently holds a PEG ratio of 1.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Alternative Energy - Other industry held an average PEG ratio of 2.02.
The Alternative Energy - Other industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
If you have some extra money to invest right now, buying shares in the companies that supply power to data centers is an attractive opportunity. McKinsey's Global Energy Perspective 2026 report projects that data center electricity demand could grow at a 24% annual rate through 2030, with power supply lagging IT compute demand.
Vistra (VST -6.51%) and GE Vernova (GEV -6.20%) are two stocks positioned to help close that gap through power generation and equipment.
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Vistra
Vistra generates power from natural gas, nuclear, coal, and solar plants and sells it through brands including TXU Energy. In the second quarter of 2026, adjusted operating profit grew to nearly $1.8 billion, up more than 30% year over year. The stock's 19% decline over the past year presents a compelling buying opportunity against this momentum.
Power demand continues to soar, and data centers are not the only driver. In July, two of the biggest U.S. power grids -- the PJM Interconnection (covering much of the mid-Atlantic and Midwest) and the Electric Reliability Council of Texas (ERCOT) -- set new records for electricity demand, with PJM topping 168 gigawatts and ERCOT topping 91 gigawatts. A large portion of the growing demand is coming from factories, electric vehicles, and population growth.
Management expects annual load -- the amount of electricity used on the grid -- to grow by at least 4% to 6% in ERCOT and by 2% to 3% in PJM through 2030, driven by industrial reshoring, electrification, population growth, and data centers.
Power prices can fluctuate, which can negatively impact Vistra's financial results. The stock also trades at a high valuation of 27 times trailing earnings, but, given long-term power demand trends, Wall Street still expects earnings to grow at a robust 34% annual rate over the next several years. This stock could still deliver market-beating gains through the end of the decade.
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GE Vernova
GE Vernova makes HA-class gas turbines, transformers, and switchgear through Prolec GE, as well as wind turbines. Its total backlog reached $176 billion in Q2 2026, and it is on track to reach $200 billion in 2027. It reports results across power, electrification, and wind segments. Data center orders in electrification topped $5 billion in the first half of 2026, more than double full-year 2025.
Management expects to end 2026 with at least 125 gigawatts under contract in its gas power business. More than half of the gigawatts under contract are for the company's largest, most efficient HA turbines. During the Sept. 16, 2026, Morgan Stanley conference, CEO Scott Strazik said that every gigawatt of these HA turbines will generate about $500 million of high-margin services revenue over the first 20 years.
Execution risk on the large backlog and recent softness in its wind segment are potential headwinds that could slow momentum. The stock's 29 price-to-earnings multiple prices in a lot of growth, but analysts project roughly 36% annual earnings growth over the next several years. That's enough growth to potentially double or triple a new investment today over the next five years.
GE Vernova’s stock has slipped into a bear market this year, falling from its year-to-date high of $1,193 to $938. The retreat has erased part of the gains made earlier in the year, when the stock was one of Wall Street’s top performers. Attention now turns to the company’s upcoming earnings report, where investors will scrutinize revenue and backlog growth.
GEV stock has slumped more than 20% from its year-high as investors book profits after its strong rally. At its peak this year, the stock was up over 960% from its 2024 low.
The ongoing retreat has also coincided with the sell-off in other industrial companies like Caterpillar and GE Aerospace.
In addition to profit-taking, investors are concerned about the company’s valuation, which has soared in recent years. Seeking Alpha data shows that, despite the recent sell-off, the company has a forward non-GAAP price-to-earnings ratio of 66.19, higher than the sector median of 19.
On a GAAP basis, the company has a forward PE ratio of 33, also higher than the sector median of 21. Most notably, these numbers are significantly higher than the S&P 500 Index’s average of 19.1. They are also higher than other faster-growing companies in the AI industry like Micron and Nvidia. As such, the ongoing pullback is a sign that the company is going through a valuation reset.
Despite the ongoing weakness in its stock, all signs are that GE Vernova’s business is firing on all cylinders as demand for its products soars.
The most recent quarterly results showed that its backlog jumped to $176 billion in Q2’26 from $129 billion in the same period last year. The CEO expects that this backlog will jump to $200 billion early next year.
GE Vernova’s revenue rose 22% in the quarter to $11.1 billion, while adjusted EBITDA increased to $1.2 billion. Most of the company’s orders came from its power division, where orders jumped 134% to $16.7 billion. The electrification business is also thriving, with orders rising 66% to $6.3 billion.
Analysts expect the company’s business to continue rising. The upcoming results, which will be released on October 28, are expected to show that its revenue rose by 20.3% to $12 billion. A 20% increase in revenue is a big achievement for a company in the industrial sector.
This view explains why analysts are bullish about its business. Susquehanna sees the stock rising to $1,270, while Guggenheim expects it to jump to $1,450. Other top analysts, including those from Evercore, Jefferies, and Bernstein, expect it to jump to $1,100 and above.
GEV stock chart | Source: TradingView
The weekly chart shows that the GEV share price has jumped from a low of $114.68 in 2024 to a record high of $1,193 in July. This surge has not been in a straight line as the stock has had some major pullbacks. For example, it dropped from $444 in January 2025 to a low of $251 in April of that year.
It also dropped from $673 in July to a low of $527 in November. Most recently, the stock has pulled back from $1,193 to the current $931. This pullback is part of the bullish flag pattern.
Therefore, the stock will likely resume the upward trend, potentially to the all-time high of $1,193. A move above that level will point to more gains, potentially to the psychological level of $1,250.
GE Vernova (GEV -0.16%) has been an extremely successful spinoff. The company's stock has surged about sevenfold since separating from General Electric (GE) in April 2024. The spinoff enabled management to focus intently on the energy segments without distraction from other legacy GE businesses.
The resulting strong stock performance came from a surging backlog of orders, while management expanded profit margins, generating massive free cash flow. With the stock recently trading above $1,000 per share after a more than 50% gain this year, now may be the time for GE Vernova to split its stock, which would lower the share price, increase the number of shares, and have no effect on the value of an individual's shares.
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Do stock splits matter? Several large companies, including energy drink maker Monster Beverage and online auto dealer Carvana, have executed stock splits this year. Travel technology company Booking Holdings even executed a 25-for-1 forward stock split in April, dropping the share price from over $4,000 to about $170 per share.
Although a stock split does not alter the company's overall value, it can indicate management's confidence in the business's fundamentals. Executives are usually reluctant to split a stock unless they are optimistic about the stock's future performance. Since it doesn't change the company's actual value at the time, it might not be surprising that stock splits don't always mean shares will rise over the long term.
But momentum in the underlying business can also be reinforced by a stock split announcement, as it signals management's confidence in the business. Data show that short-term momentum in the stock price coincides with stock split announcements, as shown in the chart below.
Image source: Statista.
The business justifies it GE Vernova's business certainly qualifies as strong. The company generated $5.1 billion in free cash flow in the second quarter. That compares to just $3.7 billion in all of 2025. GE Vernova CEO Scott Strazik summarized the state of the business with these comments in the Q2 report:
We delivered strong financial results in the second quarter as global demand for our products and solutions continues to grow. With a backlog of $176 billion, continued revenue growth and margin expansion, and significant free cash flow generation, GE Vernova's momentum is building, and we are raising our 2026 financial guidance.
So the business is strong and shares are nominally pricy, making some investors wonder whether GE Vernova will split its stock soon, which could make shares more attractive and more actively traded. When a stock splits, it can enhance liquidity by rendering shares (with a lower price tag) more accessible to a broader range of investors. Although many brokerages now offer fractional shares, most people likely underutilize this less-advertised option. Consequently, a reduced share price can attract more buyers by creating a sense of increased affordability. Remember, though, price is not value.
Investors don't know whether GE Vernova stock will be the next to split. The company has made no announcements. Whether one waits for a potential split or not, though, owning GE Vernova stock looks to be a good investment right now.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Booking Holdings, GE Vernova, and Monster Beverage. The Motley Fool has a disclosure policy.
Building wealth lies in buying and holding well-run businesses with competitive moats and long-term growth prospects. I believe GE Vernova (GEV -3.12%) has that all in spades. Since it was spun off from General Electric in 2024, GE Vernova has proven itself to be one of the best ways to invest in the global electricity race.
That artificial intelligence boom is unlikely to slow for years to come, which means GE Vernova is well-positioned to succeed well into the next decade. While the stock has recently pulled back from all-time highs, this presents an attractive time to buy for long-term investors.
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In GE Vernova's second quarter, orders grew 88% to more than $24 billion. Revenue jumped 22% to $11.1 billion. The company's free cash flow in the second quarter exceeded the entire prior year's amount, at $5.1 billion.
The good news led the company's management to raise its revenue guidance for the entire year. GE Vernova now anticipates revenue of $45.5 billion to $46.5 billion. Better yet, the free cash flow estimate exploded to $11.5-$12.5 billion, nearly double its previous level.
The electricity race is going to last for several more years, and you can see that just in GE Vernova's backlog. The business pipeline is long at $176 billion and will likely exceed $200 billion by early 2027. The Power and Electrification divisions are leading the charge with substantial current and projected future growth, while the company's struggling Wind division is becoming less consequential.
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Of course, all this good news means the stock comes at a hefty price. Currently trading at about 39 times forward earnings, this stock has very few industrial peers with as much multi-year revenue visibility and as enormous a backlog. Today's premium could look quite inexpensive to a long-term investor.
Yes, GE Vernova is ramping up spending and still dealing with a losing Wind segment. Still, the bigger picture is very promising, and I do believe that GE Vernova is among the stocks that could help an investor build generational wealth.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Vernova. The Motley Fool has a disclosure policy.
GE Vernova (GEV - Free Report) closed at $997.09 in the latest trading session, marking a -3.12% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.66%, while the tech-heavy Nasdaq lost 0.22%.
The the energy business spun off from General Electric's stock has climbed by 5.96% in the past month, exceeding the Oils-Energy sector's gain of 2.42% and the S&P 500's gain of 1.4%.
Market participants will be closely following the financial results of GE Vernova in its upcoming release. The company plans to announce its earnings on October 28, 2026. The company is predicted to post an EPS of $4.09, indicating a 149.39% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $12.1 billion, reflecting a 21.39% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $28.96 per share and a revenue of $46.31 billion, demonstrating changes of +63.71% and +21.65%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for GE Vernova. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.08% rise in the Zacks Consensus EPS estimate. GE Vernova currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that GE Vernova has a Forward P/E ratio of 35.53 right now. Its industry sports an average Forward P/E of 17.95, so one might conclude that GE Vernova is trading at a premium comparatively.
Investors should also note that GEV has a PEG ratio of 1.85 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Alternative Energy - Other industry had an average PEG ratio of 2.05 as trading concluded yesterday.
The Alternative Energy - Other industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 38% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
It's often highlighted as one of the bigger beneficiaries of the artificial intelligence (AI) revolution. And to be fair, it does serve a decent-sized swath of the AI industry.
However, AI only makes up a minority of GE Vernova's (GEV -2.95%) total business. About 20% of its power-production arm's backlog (measured in gigawatts) is orders for its power-generating equipment to be installed at AI data centers (mostly natural gas turbines). The rest of its order book reflects demand from conventional customers like power utilities, oil refineries, and other high-power-consumption facilities that don't want utility-supplied electricity.
That's not a bad thing. Indeed, GE Vernova's lack of dependence on one single industry -- the AI industry, no less -- actually makes it even easier for investors to own.
Image source: Getty Images.
The numbers that matter for GE Vernova Don't misread the message. The company will gladly sell as much of its wares as any paying customer is willing to buy. And the swell of demand from the fast-growing AI industry has given GE Vernova some margin-widening pricing power to be sure.
Artificial intelligence isn't exactly a panacea for this outfit, however. As was noted, only about one-fifth of the power-generating capacity that's already been ordered but not yet delivered is equipment earmarked for data centers. Similarly, while the data center industry's 2026-to-date orders of GE Vernova's electrification solutions are more than double this arm's orders through the first half of 2025, at a total of $5 billion, these orders still only account for roughly one-third of its total new electrification orders received during the first two quarters of the fiscal year. And, electrification itself only accounts for about one-third of the company's current revenue mix.
In other words, GE Vernova's stock isn't quite the AI trade it's sometimes made out to be.
GE Vernova is plugged into something bigger and more reliable than AI data centers At first blush, this reality check seems to dial back the bullishness that had been surrounding this ticker; maybe it undermines some of the premium valuation the market might have otherwise been willing to price in.
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There's arguably more upside than downside, though, simply because GE Vernova doesn't face the risk of AI mania suddenly losing steam and bringing a quick end to its backlog's growth. The company is largely meeting the ever-growing power needs outside of the data center market, which may not be as flashy, but are certainly far more sustainable. For perspective, thanks to the ongoing proliferation of electric vehicles, the need for more air conditioning, and other needs beyond AI data centers, the International Energy Agency expects global demand for electricity to grow 3.6% this year, up from 2025's pace of only 3%, en route to 3.8% growth in 2027.
Admittedly, those numbers aren't very big. By worldwide power-production measures, though, they're huge. They're also just a glimpse of the longer-term demand that the planet isn't yet equipped to meet. To this end, Morningstar analysts' longer-term revenue outlook for a 2030 top line of $78.6 billion versus last year's sales of $38.1 billion is probably a pretty reliable projection.
Arguably more important to interested investors right now, this backdrop makes GEV's lethargy since mid-year a buying opportunity.
TVA can construct a 300-MW BWRX-300, but GE Vernova disclosed no project revenue or fleet order. Summary
Regulatory progress reduced one risk without proving commercial scale.
GE Vernova GEV, the power-equipment and grid-technology company, moved closer to deploying its small nuclear reactor in the United States, while shares fell 3.42% to $994 at 11.44am EST in October 7 trading. TVA's construction permit for Clinch River clears a major regulatory hurdle. But permission to build is only one step toward turning the technology into a commercial business.
GE Vernova's September 29 announcement identifies the approval as the first U.S. construction permit for its BWRX-300, a 300-megawatt boiling-water reactor. TVA filed its application in April 2025. The bigger opportunity is repeat business: using the same design across projects could let engineering work, licensing experience and supplier capabilities carry forward. Each successful deployment could make the next project easier to execute.
For investors, the test is whether regulatory progress turns into funded projects, equipment orders and reliable delivery. Demand for dependable data-center power could strengthen the opportunity, but this permit alone establishes neither revenue nor a reactor fleet. The picture's GF Score of 17/100 provides limited support for a broad investment-quality case, with financial strength the strongest displayed component. GE Vernova has cleared a hurdle. Now it needs to prove the economics.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
GE Vernova (GEV +3.96%) was flagged by a well-known researcher as a top stock buy in the power engineering space after market close on Monday, and investors reacted positively the following day. The company's shares cruised nearly 4% higher on this wave, easily topping the S&P 500 index's 0.3% gain that trading session.
The fabulous four That report came from Oppenheimer, whose analyst, Colin Rusch, singled out four sector stocks he believes are poised to gain substantially.
Image source: Getty Images.
According to Investing.com, the analyst wrote that power technology companies are currently enjoying a period of growth due to numerous factors, not least the eager build-out of facilities supporting the build-out of artificial intelligence (AI).
However, this is occurring at a time of notable macroeconomic insecurity. Conflicts in Europe and, especially, the Middle East have driven up prices for certain commodities and stoked inflation. Businesses and consumers alike are becoming more hesitant to spend, and the products/services power engineering companies offer tend to be expensive.
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American heavyweight GE Vernova tops Rusch's "best four in the sector" list. He tagged it as Oppenheimer's No. 1 pick in the space, citing President Trump's August executive order barring imports of bulk power equipment from China. In his view, GE Vernova has significant pricing power in the absence of competition from that part of the world.
In mine, the company doesn't just benefit from the ban on Chinese imports -- it's a market leader on its own as a go-to producer of power-generation equipment crucial for AI build-outs. And with a growing backlog, it looks like it's smack dab in the middle of a high-demand business that could sustain it for years.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Vernova. The Motley Fool has a disclosure policy.
GE Vernova's cash outlook just surged while the stock sat still, and that gap between price and reality has analysts lining up on one side of the trade.
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GE Vernova (NYSE:GEV | GEV Price Prediction) trades at $987.29, and the stock has been moving sideways since its last earnings report while management has sharply raised its cash outlook.
GE Vernova builds gas turbines, grid and electrification equipment, and wind turbines. Demand from AI data centers and utilities upgrading the grid has driven strong order growth across the business. Shares are up 51.34% year to date. They also sit 17.4% below the 52-week high of $1,195.94 and trade between the 50-day average of $968.41 and the 200-day average of $913.15.
GE Vernova’s Backlog Is Turning Into Cash at a Rapid Pace Second-quarter free cash flow came in at $5.10B. Management raised full-year free cash flow guidance to $11.5B to $12.5B, up from $6.5B to $7.5B. Bookings rose 88% organically to $24.20B, and data center orders in Electrification exceeded $5 billion in the first half (GEV is one of the clearest non-chipmaker AI infrastructure plays, and we highlighted seven of these picks-and-shovels names in a free report here).
Management expects backlog to reach $200 billion in 2027 and is targeting $56B in revenue with a 20% adjusted EBITDA margin by 2028. The cash is already reaching shareholders. The dividend doubled to $0.50 per share, and the buyback authorization grew to $10B.
Down Payments Inflate the Cash Story, and the Multiple Leaves No Margin for Error Working capital supplied $6.4 billion of cash in the quarter, mostly from customer down payments. CFO Ken Parks said first-half free cash flow will be “substantially higher than the second half.” Second-quarter EPS of $2.47 missed the $3.17 estimate.
At a forward P/E of 39 and EV/EBITDA of 81, the price assumes perfect delivery. Wind is still a drag, with an expected ~$400M EBITDA loss this year and orders down 40% in the quarter.
Second-Half Cash Flow Will Decide Whether the Range Breaks Second-half results will provide the proof. Management expects positive free cash flow in the third quarter, with revenue and EBITDA peaking in 4Q26. If slot reservations convert into orders on pace toward at least 125 GW under contract by year-end, the optimistic view holds up. If margins slip, the bears gain ground.
Analyst Targets Sit Well Above the Trading Range The stock trades at $987.29, while the average analyst target of $1,230.34 implies 24.6% upside. Sentiment across the 37 covering analysts tends positive:
Strong Buy: 6 Buy: 24 Hold: 7 Sell: 0 Over the past year GE Vernova rose 63.25%, and the S&P 500 advanced 14.3%. Over the past month the stock added 9.88%, compared with 0.3% for the index. The trailing P/E stands at 27.
Cash Flow Keeps Building While the Stock Pauses At $987.29, GE Vernova trades below the average analyst target while its cash outlook improves.
Since the last earnings report, the share price has moved sideways while the cash outlook rose sharply. Down payments flow straight into capacity, and management says those payments fund the expansion. Annual gas turbine output is set to reach 20 GW starting this quarter, which turns backlog into revenue that customers have already partly paid for.
The most important drivers over the next two quarters are positive third-quarter free cash flow and the conversion of slot reservations into orders. A sharp drop in conversions or a stall in margins would break the thesis.
Strong cash generation keeps paying for buybacks and capacity while the stock moves sideways, so this consolidation looks like a reset with the stock trading below the analyst targets.
Contact [email protected] for any questions or corrections.
GE Vernova (GEV +3.89%) is a clear and obvious buy! That, at least, is the assessment of one analyst tracking the stock, who reiterated his bullish outlook for the company's future on Thursday. That helped give the stock a significant lift, and it closed that trading session nearly 4% higher.
1,350 reasons to buyThat analyst was Evercore ISI's Alex Virgo, who maintained his outperform (read: buy) recommendation on GE Vernova's equity. He also kept his $1,350-per-share price target intact; this anticipates upside of almost 37% from the stock's current level.
Image source: Getty Images.
Virgo likely felt compelled to publish the update because he raised his annual 2027 and 2028 earnings per share (EPS) growth estimates by 3% to 4% for each year.
According to reports, the analyst believes GE Vernova's strong momentum will keep orders flowing in. With that, the company's backlog will likely rise to $200 billion next year.
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A winning approachA swelling backlog, of course, means a firmer base for revenue in future periods. While this isn't surprising, as GE Vernova has established an enviable position in power generation equipment for artificial intelligence (AI) data centers, it is indicative of its ability to win and retain important (and lucrative) business. I remain optimistic about this company's future, and I feel Virgo's bullishness -- and ambitious price target -- are justified.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Vernova. The Motley Fool has a disclosure policy.
GE Vernova Inc. (NYSE:GEV) shares are trading higher Thursday afternoon as investors assess several major commercial and regulatory developments announced during September.
Here’s what investors need to know.
GE Vernova stock is surging to new heights today. Why is GEV stock up today? Offshore Settlement and International Services ExpansionOn September 16, GE Vernova resolved outstanding commercial litigation regarding the Vineyard Wind offshore project through an amicable settlement. The agreement removes a significant legal and operational overhang surrounding the company’s wind segment following turbine blade failures in July 2024, paving the way for stabilized segment margins as installation activity resumes on the 800-megawatt offshore facility.
Building on its international services footprint, on September 23, the energy giant secured a key services contract with the Egyptian Electricity Holding Company to provide Rotor Life Extension solutions across five utility gas turbines in Egypt.
The long-term agreement extends the operational lifespan and reliability of North Africa’s power grid while expanding GE Vernova’s high-margin services backlog, which provides predictable recurring cash flows alongside core equipment sales.
Regulatory Breakthrough for Advanced Nuclear PowerOperational momentum accelerated late in the month with a major regulatory milestone. On September 29, the U.S. Nuclear Regulatory Commission issued its first domestic construction permit for a BWRX-300 small modular reactor to the Tennessee Valley Authority at its Clinch River site in Tennessee.
“Fleet deployment is essential to scaling nuclear energy in the United States,” said Jason Cooper, Chief Executive Officer of GE Vernova Hitachi Nuclear Energy. “A standard design, combined with a predictable and efficient regulatory environment, allows us to apply common technology, licensing experience, supply chain capabilities and lessons learned from one project to the next. Clinch River brings us another step closer to making that fleet model a reality,” Cooper added.
GEV Stock Rises Thursday AfternoonGEV Price Action: GE Vernova shares were up 4.58% at $994.05 at the time of publication on Thursday, according to Benzinga Pro data.
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GE Vernova's (GEV -1.25%) CEO, Scott Strazik, recently gave a presentation at a Morgan Stanley conference, and his remarks were bullish on the stock and the company's future prospects. It was a series of subtly positive comments on the business that fell short of a guidance hike, but gave investors plenty of reason to raise earnings expectations. Here's why.
Image source: Getty Images.
What Scott Strazik said For reference, GE Vernova operates out of three segments: power (mainly gas turbine equipment and services), responsible for $2.9 billion in earnings before interest, taxation, depreciation, and amortization (EBITDA) in 2025; electrification (mainly electrical grid solutions), responsible for $1.4 billion in EBITDA in 2025; and finally wind (mainly onshore wind turbines), which lost $598 million in EBITDA in 2025.
Strazik pulled forward expectations for the company's backlog to hit $200 billion in 2027, moving it to "very early in 2027." He also noted that "$200 billion is a very humble milestone on the trajectory we see toward growing to a much larger and more profitable business." Within power, he noted that GE Vernova had 40 gigawatts (GW) of orders in the first half and that the current guidance is for 20 GW in the second half, but "Now 20 gigawatts is likely to prove to be conservative for the second half of the year." Strazik affirmed that all three segments would see margin growth in their 2026 backlog, with GE Vernova reaching a "profitability pivot point" in wind.
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What it all means for investors The first three points clearly indicate that orders and backlog momentum for the overall company and power are improving, with no signs of slowing. Moreover, the commentary that $200 billion is a "humble" milestone suggests GE Vernova investors should raise expectations for the company's backlog. Moreover, it's clear there's upside potential for power orders in the second half, and investors should watch what Strazik says in the upcoming third-quarter results presentation.
However, the most interesting point is the affirmation that backlog margin is growing, because a growing backlog combined with rising profitability in that margin implies margin expansion down the line.
Strazik even broke out the expected backlog margin expansion as "larger" in 2026 than the double-digit expansion in 2025. The margin in the electrification backlog will be modest, but there's "a healthy positive change in margin and backlog in wind."
While there's no guarantee the wind segment will start generating earnings again in 2027, GE Vernova appears to be successfully working through the loss-making offshore wind contracts it previously took on. The wind power end-market outlook remains soft, but GE Vernova's profitability in it is turning around, and Strazik argued it has an opportunity to repower its existing installed base.
What's next for GE Vernova? Investors are likely to see improving orders, backlog, and margin momentum in gas turbines driven by artificial intelligence data center demand. Electrification orders (up 76% in the first half of 2026) and backlog (up 64% in the second quarter) are booming, and new products will soon be added to the order book. And wind profitability is turning around. All of these point to a bright future for GE Vernova.
GE Vernova (GEV - Free Report) has recently been on Zacks.com's 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.
Shares of this the energy business spun off from General Electric have returned +7.1% over the past month versus the Zacks S&P 500 composite's -0.4% change. The Zacks Alternative Energy - Other industry, to which GE Vernova belongs, has lost 0.6% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere 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.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
GE Vernova is expected to post earnings of $4.08 per share for the current quarter, representing a year-over-year change of +148.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.4%.
For the current fiscal year, the consensus earnings estimate of $30.49 points to a change of +72.4% from the prior year. Over the last 30 days, this estimate has changed -0.6%.
For the next fiscal year, the consensus earnings estimate of $24.08 indicates a change of -21% from what GE Vernova is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, GE Vernova is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile 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.
In the case of GE Vernova, the consensus sales estimate of $12.07 billion for the current quarter points to a year-over-year change of +21.1%. The $46.29 billion and $52.69 billion estimates for the current and next fiscal years indicate changes of +21.6% and +13.8%, respectively.
Last Reported Results and Surprise HistoryGE Vernova reported revenues of $11.1 billion in the last reported quarter, representing a year-over-year change of +21.9%. EPS of $2.47 for the same period compares with $1.86 a year ago.
Compared to the Zacks Consensus Estimate of $10.77 billion, the reported revenues represent a surprise of +3.12%. The EPS surprise was -22.08%.
Over the last four quarters, GE Vernova surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationWithout 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.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it 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.
Bottom LineThe facts discussed here and much other information on Zacks.com 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.
CAMBRIDGE, Mass.--(BUSINESS WIRE)--GE Vernova (NYSE: GEV) today announced that its Board of Directors has declared a $0.50 per share quarterly dividend. The quarterly dividend will be payable on November 24, 2026, to shareholders of record as of October 27, 2026. Future dividend declarations will be made at the discretion of the Board of Directors and will be based on GE Vernova's earnings, financial condition, cash requirements, prospects, and other factors. Additional Information GE Vernova's.
In the latest trading session, GE Vernova (GEV - Free Report) closed at $962.49, marking a +1.34% move from the previous day. This change outpaced the S&P 500's 0.17% loss on the day. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.09%.
Shares of the the energy business spun off from General Electric have appreciated by 5.7% over the course of the past month, outperforming the Oils-Energy sector's gain of 0.04%, and the S&P 500's loss of 0.24%.
The investment community will be paying close attention to the earnings performance of GE Vernova in its upcoming release. In that report, analysts expect GE Vernova to post earnings of $4.08 per share. This would mark year-over-year growth of 148.78%. Meanwhile, the latest consensus estimate predicts the revenue to be $12.07 billion, indicating a 21.11% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $30.49 per share and revenue of $46.29 billion, which would represent changes of +72.36% and +21.61%, respectively, from the prior year.
Any recent changes to analyst estimates for GE Vernova should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.63% lower. At present, GE Vernova boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, GE Vernova is holding a Forward P/E ratio of 31.15. This signifies a premium in comparison to the average Forward P/E of 17.14 for its industry.
One should further note that GEV currently holds a PEG ratio of 2.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Alternative Energy - Other industry held an average PEG ratio of 2.17.
The Alternative Energy - Other industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 108, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider First Solar?The final step today is to look at a stock that meets our ESP qualifications. First Solar (FSLR - Free Report) earns a #3 (Hold) 30 days from its next quarterly earnings release on October 29, 2026, and its Most Accurate Estimate comes in at $4.79 a share.
By taking the percentage difference between the $4.79 Most Accurate Estimate and the $4.63 Zacks Consensus Estimate, First Solar has an Earnings ESP of +3.42%. Investors should also know that FSLR is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
FSLR is one of just a large database of Oils and Energy stocks with positive ESPs. Another solid-looking stock is GE Vernova (GEV - Free Report) .
GE Vernova is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on October 28, 2026. GEV's Most Accurate Estimate sits at $4.11 a share 29 days from its next earnings release.
For GE Vernova, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $4.08 is +0.84%.
FSLR and GEV's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Growing power demands from artificial intelligence (AI) data centers have thrust energy stocks into the spotlight. Once a sleepy corner of the market known for its modest growth, energy has become a top focus for technology companies, creating opportunities for investors.
Data center operators are rushing to secure power wherever they can, a powerful tailwind for GE Vernova's (GEV +0.27%) gas turbine equipment. But in the longer term, hyperscalers are looking toward nuclear energy and advanced small modular reactors (SMRs).
X-Energy (XE -4.07%), which made its initial public offering (IPO) in April, and GE Vernova both develop SMRs, which promise to make nuclear energy modular, scalable, and safer than traditional large nuclear power plants.
With GE Vernova as a more mature megacap industrial leader, investors may be wondering whether X-Energy offers more upside from here. Let's compare the two companies to find out.
GE Vernova and X-Energy both develop small modular nuclear reactors GE Vernova is seeing incredible demand for its gas-powered turbines from utilities and data center operators. Fueled by natural gas, these turbines are seen as a bridge power solution for companies looking to meet their energy needs today. At the end of the second quarter, GE Vernova has 116 gigawatts (GW) of capacity under contract and a $176 billion backlog.
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Gas turbines have driven much of GE Vernova's recent growth. But the company offers power solutions beyond gas, including a light-water small modular reactor (SMR), the BWRX-300, which its subsidiary manufactures in partnership with Hitachi. Its SMR is a boiling-water nuclear reactor that uses low-enriched uranium (LEU), which is commonly used in traditional reactors.
X-Energy is developing its own SMR, the Xe-100, which uses helium gas for cooling instead of water. By using helium gas, the Xe-100 can reach temperatures up to 750 degrees celcius, making it useful for industrial processes such as hydrogen production, chemical manufacturing, and desalination. In addition, the Xe-100 uses tri-structural isotropic (TRISO) pebbles for fuel, which have been called "the most robust nuclear fuel on Earth" by the U.S. Department of Energy.
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Which stock is right for you? GE Vernova and X-Energy are both working on SMR nuclear technology, but they are at very different stages in their lifecycles.
GE Vernova is a mature industrial leader with a massive global reach and a market capitalization of $250 billion. For more conservative investors seeking exposure to a company that can meet AI power demands today and still offer upside from its nuclear technology in the 2030s, GE Vernova is the better buy.
X-Energy is still in its very early stages. It aims to complete construction and installation at its TX-1 fuel facility next year and begin commercial fuel fabrication by 2028. The nuclear company is also targeting the 2030s for deploying its Xe-100 SMRs to customers such as Dow Chemical and Amazon.
For these reasons, X-Energy is a highly speculative, volatile small-cap stock with more to prove over the next few years. But it also offers more explosive upside potential if it succeeds.
GE Vernova (GEV +0.27%) and Bloom Energy (BE +8.27%) are addressing the AI data center power shortage from opposite directions. One brings generation and grid scale. The other brings fast onsite deployment. I break down the growth, valuation, risks, and the one trade-off that could determine which stock has the stronger long-term setup.
Stock prices used were the market prices of Sept. 11, 2026. The video was published on Sept. 27, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy and GE Vernova. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Two of the hottest artificial intelligence (AI) companies on the planet plan to go public. Anthropic filed a confidential S-1 initial registration statement with the U.S. Securities and Exchange Commission (SEC) on June 1, 2026, and plans to conduct an initial public offering (IPO) in November. OpenAI filed its S-1 a week later than Anthropic and will likely hold its IPO next year.
While investors eagerly await the debuts of these two prominent AI stocks, there's another stock they can buy right now that is directly benefiting from the success of both Anthropic and OpenAI. GE Vernova (GEV +0.27%) doesn't care which of these AI model leaders go public first -- it wins either way.
Image source: The Motley Fool.
Power hungry As Anthropic and OpenAI scramble to deliver increasingly advanced AI models, the electricity needed to run their systems continues to grow. Electric power ranks among the most precious commodities fueling the AI boom.
OpenAI has stated that "electrons are the new oil." The company has urged the U.S. government to increase investment in electricity production and has specifically pushed for an additional 100 gigawatts of power capacity per year.
Anthropic is singing from the same page in the hymnal. It released a report in July 2025 titled "Build AI in America" that declared, "Frontier AI model training requires continuous access to firm, reliable power sources, and meeting this goal will require extraordinary U.S. energy capacity across a range of energy technologies."
However, the seemingly insatiable electricity demand by AI data centers has been at the center of an ongoing controversy. Some accuse AI companies of driving up electricity costs for other customers. In response to criticism, both Anthropic and OpenAI have committed to paying higher electricity prices for their data centers.
A win-win scenario for GE Vernova GE Vernova and its shareholders are thoroughly enjoying the surge in the build-out of power-hungry data centers. The company's three business segments are each "picks-and-shovels" providers to the AI industry. Its power segment manufactures power generation equipment, including gas turbines. GE Vernova's wind segment makes turbines and blades for wind power generation. The company's electrification segment markets products and services for the transmission, distribution, and storage of electricity.
The industrial stock has skyrocketed more than 6x since its spin-off from GE (GE +2.29%) (now GE Aerospace) in April 2024. Even though GE Vernova's share price has pulled back from its highs set in June 2026, the stock remains up around 45% year to date.
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A quick look at GE Vernova's latest quarterly results helps explain its impressive stock performance. The company's new orders jumped 88% year over year in the second quarter of 2026 to $24.2 billion, with especially strong growth in its power and electrification segments. The electrification segment's orders from data centers alone topped $5 billion in the first half of 2026, more than double the total from all of 2025.
GE Vernova is, for all practical purposes, agnostic about which AI companies or models achieve the most commercial success. If and when Anthropic and OpenAI raise additional capital through their respective IPOs, both companies will almost certainly spend more on electricity going forward. GE Vernova is in a win-win scenario.
Is GE Vernova stock a buy? Because Anthropic's and OpenAI's S-1 filings were confidential, investors don't yet know as much about the two companies' financial positions as they'd prefer. That isn't the case with GE Vernova. Its books are wide open to anyone to examine -- and there's a lot to like in the numbers you'll see.
However, some investors will quickly spot one area of concern with GE Vernova. The stock trades at roughly 38 times forward earnings. This valuation makes the industrial giant more expensive than most of the typically pricey "Magnificent Seven" stocks.
Still, most Wall Street analysts view GE Vernova as a smart pick right now. I think they're right to be bullish. GE Vernova's shares are expensive, but they're worth the premium.
One of the solid pick-and-shovel plays on artificial intelligence (AI) in 2026 has been GE Vernova (GEV +0.27%), providing the power infrastructure needed to keep data centers running through gas turbines, grid hardware, and software solutions. As of the Sept. 23 closing price of $951.82, shares are up 45.6% compared to the S&P 500's 12.5% return over the same period.
With that type of outperformance, it's reasonable to wonder if it's worth sitting on the sidelines and waiting for a short-term pullback before buying shares or adding to a stake. For anyone having that internal debate, here's what I'd consider next.
Image source: The Motley Fool.
The AI boom shows no signs of slowing down For GE Vernova, there are no signs that AI-driven energy demand will slow. One piece of evidence is that some of the largest tech companies aren't putting the brakes on their spending, which is generally increasing due to AI infrastructure build-outs.
Amazon, for instance, announced in July that it was upping its 2026 capital expenditures from $200 billion to $220 billion. With that increase, CEO Andy Jassy said on Amazon's 2026 second-quarter earnings call, "Even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027, too." Also in July, Alphabet announced plans to spend between $195 billion and $205 billion in 2026, up from a previous forecast of up to $190 billion.
Looking even further out, research from Bloomberg suggests that around 20% of the electricity consumption in the United States by 2035 will come from data centers, up from a projected 5.9% for 2026. And looking at the overall AI market broadly, the global market size is projected to grow from $539.5 billion in 2026 to $3.4 trillion by 2033, according to Grand View Research.
Adding it all up, there's nothing to suggest the current demand GE Vernova is seeing for its hardware and software to help power AI will slow anytime soon. If anything, it will only accelerate. So, for anyone planning to hold GE Vernova shares for years or longer, I wouldn't worry about whether it is too late to buy, as the stock price could still have plenty of room to ultimately march higher from where it's trading today.
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A plan in place Even though future demand for GE Vernova's hardware and software shows promise, the stock price could still experience pullbacks, as it has already. Despite shares climbing 45.6% so far in 2026, they remain about 20% below their 52-week high of $1,195.94. For anyone who bought into the 52-week high, even while believing in GE Vernova's long-term upside, it can be difficult to cope with the decline.
To counter that feeling of worry, investors might stagger out investments. Instead of using all of an investable budget at once, an investor could set up a plan, either manually or automatically, to buy a set number of shares or invest a set dollar amount each week, biweekly, or monthly. That way, the power of dollar-cost averaging kicks in, which can mitigate worries about buying at a peak and keep the itch to sell at bay if the stock price swings lower.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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SummaryGE Vernova Inc. remains a Buy, with attractive GARP characteristics and strong EPS growth despite recent underperformance since its July peak.Q2 saw robust revenue and order growth, margin expansion, and raised FY 2026 guidance, but profitability missed consensus, prompting mixed sentiment.My GEV valuation target is revised to $1080 (from $1160) on lower normalized EPS ($27), reflecting concerns about the AI buildout's pace.Key GEV risks include slower AI capex, input cost inflation, regulatory headwinds, and underperformance in the wind segment; technical support near $860 is critical. A_Columbo/iStock Editorial via Getty Images
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Probably not, but the rapidly reemerging form of clean energy generation just received a significant boost. Representatives from global engineering companies GE Vernova (GEV +0.16%), Hitachi (HTHIY -1.84%), Samsung C&T, and SGE signed a memorandum of understanding (MoU) to cooperate on building and deploying small modular reactors (SMRs) in Europe. Here's a look at the quartet's ambitious goals.
Image source: Getty Images.
A new nuclear era?For those who might not be familiar with the technology, an SMR is an advanced nuclear power plant design that has several key advantages over traditional plants. Firstly, they are much cheaper to build, and since they're modular, they can be constructed remotely, away from the site where they'll be located. Basically, they are smaller-scale, plug-and-play nuclear generators that are quicker to construct and easier to finance than classic nuclear power plants.
In an age when artificial intelligence (AI) data centers, with their immense energy needs, are being built out as quickly as possible, SMRs have great appeal. Not only that, but for years, Europe has sought to further reduce its dependence on Russia for inputs that power most energy-generating facilities, including nuclear ones. Again, SMRs would address this need elegantly -- for fuel, they use standard low-enriched uranium (LEU), which can be entirely sourced from enrichment providers operating in the West.
Hence the agreement between the four major engineering companies, one of which (GE Vernova) is headquartered in the U.S., two are from Asia (Hitachi is Japanese, and Samsung C&T is South Korean), and the final one, SGE, is based in Europe, specifically Poland.
Appropriately enough for such a globe-spanning agreement, the MoU was signed during the Atlantic Council Nuclear Energy Policy Summit. That's an event conducted on the sidelines of the current United Nations (UN) General Assembly in New York. The four companies will cooperate on market development and commercial opportunities for the BWRX-300, an SMR developed by subsidiaries of GE Vernova and Hitachi.
There is plenty of government support for the initiative, as evidenced by the presence of U.S. Deputy Secretary of State Christopher Landau and Japan's Vice-Minister for International Affairs at the Ministry of Economy, Trade and Industry, Masayoshi Arai, at the signing. It's also supported by a more general memorandum of cooperation (MoC), a trilateral government-level agreement signed between U.S., Japanese, and South Korean officials to jointly promote SMR deployment outside of their three nations. The MoC was signed during the most recent NATO summit.
A team of expertsIn its press release on the MoU, GE Vernova wrote that the planned collaboration harnesses significant corporate know-how "in nuclear technology, engineering and project delivery, and regional development."
As for its own participation, the American company quoted its chief corporate officer, Roger Martella, as saying that "GE Vernova has a long-standing history and presence across the European continent. This collaboration brings together complementary capabilities to help advance BWRX-300 deployment across multiple markets and build on the momentum already behind the technology."
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Of course, this news is exciting for the future of energy generation in Europe, not to mention the fortunes of the four companies involved (plus their suppliers). We should bear firmly in mind, though, that an MoU is essentially a document in which several parties loosely agree to work together; it is not a contract that legally binds them to certain commitments.
That said, this gives each member at least a little skin in the game for nuclear power build-outs, which, for many policymakers around the world, are increasingly seen as an ideal choice for developing and improving energy infrastructure.
Since the MoU is very general and therefore quite open, it's difficult or impossible to estimate how the fundamentals of GE Vernova and its partners might be affected by their combined work. Nevertheless, as agreed, the stated goal has enormous potential to benefit them handsomely indeed. Investors in any or all of the four would do well to watch how the MoU evolves into firm contracts going forward.
