For the quarter ended March 2026, Atlas Energy Solutions Inc. (AESI - Free Report) reported revenue of $265.58 million, down 10.8% over the same period last year. EPS came in at -$0.36, compared to $0.08 in the year-ago quarter.
The reported revenue represents a surprise of +4.25% over the Zacks Consensus Estimate of $254.75 million. With the consensus EPS estimate being -$0.23, the EPS surprise was -56.52%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Atlas Energy Solutions Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Product revenue: $108.94 million versus $103.59 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -22% change.Rental revenue: $17.53 million versus the two-analyst average estimate of $18.5 million.Service revenue: $139.11 million compared to the $127.42 million average estimate based on two analysts. The reported number represents a change of -7.6% year over year.View all Key Company Metrics for Atlas Energy Solutions Inc. here>>>
Shares of Atlas Energy Solutions Inc. have returned +41% over the past month versus the Zacks S&P 500 composite's +10% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Atlas Energy Solutions Inc. (AESI - Free Report) came out with a quarterly loss of $0.36 per share versus the Zacks Consensus Estimate of a loss of $0.23. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -56.52%. A quarter ago, it was expected that this company would post a loss of $0.22 per share when it actually produced a loss of $0.22, delivering no surprise.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Atlas Energy Solutions Inc., which belongs to the Zacks Oil and Gas - Integrated - United States industry, posted revenues of $265.58 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.25%. This compares to year-ago revenues of $297.59 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Atlas Energy Solutions Inc. shares have added about 81.9% since the beginning of the year versus the S&P 500's gain of 5.6%.
What's Next for Atlas Energy Solutions Inc.?While Atlas Energy Solutions Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Atlas Energy Solutions Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.13 on $271.47 million in revenues for the coming quarter and -$0.50 on $1.08 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Integrated - United States is currently in the top 21% of the 250 plus Zacks industries. 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.
Another stock from the same industry, Occidental Petroleum (OXY - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 5.
This oil and gas exploration and production company is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of -28.7%. The consensus EPS estimate for the quarter has been revised 28.9% higher over the last 30 days to the current level.
Occidental Petroleum's revenues are expected to be $5.5 billion, down 19.7% from the year-ago quarter.
Fears of hotter-than-expected inflation were realized today. Consumer Price Index (CPI) data revealed that headline CPI rose 0.6% month-over-month in April. This pushed the year-over-year figure to 3.8%, which constitutes the highest reading since May 2023. To beat the CPI heat, three distinct natural resource ETFs offer varying ways to hedge against higher inflation.
Natural resources such as energy, metals, and agriculture have historically exhibited inflation protection characteristics. As the cost of living rises, prices of the raw materials that fuel and feed the world typically follow in tow.
For investors, a pivot towards real assets provide a natural hedge against eroding purchasing power. The S&P Global Natural Resources Index is also outpacing the broader S&P 500 by over 12% year to date, which makes exposure all the more enticing. ETFs can provide ease of exposure to natural resources through a flexible investment vehicle.
Key Takeaways With April’s CPI jumping to 3.8% — the highest level in nearly three years — natural resource ETFs are back in the spotlight as essential tools for preserving purchasing power through real asset exposure.
NDIV offers high income via covered calls (10%+ distribution rate), GUNR provides broad global upstream index exposure, and CSNR offers the flexibility of active management.
As the market prepares for a transition at the Federal Reserve, the persistent difficulty in tamping down inflation continues to create a favorable environment for energy, metals, and agriculture producers.
^SNRU data by YCharts
NDIV: Income-Focused Exposure Up 37% year-to-date, the Amplify Energy & Natural Resources Dividend Income ETF (NDIV) has been a standout performer. With a 30-day SEC yield of 4.67% and a distribution rate of of 10.79% (both as of April 30), the fund also provides income to boot in this higher-for-longer inflationary environment.
The fund targets high-dividend energy and natural resource equities while overlaying a strategic covered call strategy. This approach aims for an annualized income of 10% or more, providing a significant yield cushion even when volatility hits the broader market.
NDIV’s covered call methodology can be particularly effective when markets trend higher or even sideways. The fund generates monthly option premiums while maintaining exposure to production giants like Atlas Energy Solutions (AESI), which is its top holding (as of May 12). With the energy sector poised to benefit from AI-driven power demands, NDIV’s blend of growth and diversified income makes it a compelling choice.
See more: Energy, Materials Propel NDIV to Strong March Performance
GUNR: Capturing Pricing Power Upstream To capture exposure to the upstream portion of the supply chain, the FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) is an ideal ETF play. Furthermore, those looking for a global mandate in an index fund that captures this upstream exposure will appreciate the country diversification of GUNR.
GUNR targets companies involved in the exploration and extraction of raw materials. Given this focus, the fund essentially captures pricing power at the source, which offers a way to hedge against the rising tide of energy prices. When global demand rises, price pressures first occur at the resource level where GUNR targets companies before it trickles down to manufacturers and consumers.
The fund is highly diversified with its over 180 holdings (as of May 11). By holding energy giants like Exxon Mobil and BHP Group, GUNR provides a direct link to the underlying economics of scarcity.
CSNR: An Actively Managed Option For those seeking an actively managed fund, the Cohen & Steers Natural Resources Active ETF (CSNR) is worth a look. Active management can be helpful in the natural resources space to navigate challenges associated with geopolitical tensions or supply chain disruptions that can upend markets quickly. As such, the flexibility of active management is a welcome benefit.
CSNR uses a proprietary risk-parity framework that diversifies exposure across energy value chains, metals, mining, and agriculture. As mentioned, the strategy can pivot its weightings based on real-time scarcity dynamics due to its actively managed portfolio. The fund has 65 holdings (as of March 31), which includes major energy players like Exxon Mobil Corporation alongside metal mining giants like Newmont Mining Corporation.
Tailwinds for Natural Resources? With the U.S. Senate expected to confirm Kevin Warsh as the next Federal Reserve chair, grappling with inflation will be one of his primary tasks at the central bank helm. Tamping down inflation this year has been an elusive goal, but this can create further tailwinds for natural resources through the rest of this year.
For now, this bodes well for natural resource ETFs. Whether through the income-heavy covered call strategy of NDIV, the upstream focus of GUNR, or the active management of CSNR, investors have optionality when it comes to turning inflation into a performance driver.
Feature Amplify Energy & Natural Resources Dividend Income ETF FlexShares Global Upstream Natural Resources Index Fund Cohen & Steers Natural Resources Active ETF Ticker NDIV GUNR CSNR Issuer Amplify ETFs Northern Trust (FlexShares) Cohen & Steers Inception Date August 24, 2022 September 16, 2011 February 4, 2025 Expense Ratio 0.59% 0.46% 0.50% Assets Under Management ~$28 Million ~$7.4 Billion ~$97 Million Number of Holdings 40 181 65 Underlying Index EQM Natural Resources Dividend Income Index Morningstar Global Upstream Nat Res Index Active Management (No Index) Selection Universe Global Natural Resource Dividend Payers Global Upstream Energy, Metals & Agriculture Global Real Assets & Commodity Equities For more news, information, and analysis, visit the Thematic Investing Content Hub.
VettaFi LLC (“VettaFi”) is the index provider for NDIV, for which it receives an index licensing fee. However, NDIV is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of NDIV.
At quarter end, Invesco Summit Fund's largest overweights were in industrials, energy and communication services. Within industrials and energy, AI related energy demand has continued to drive spending on electrical infrastructure and power generation. The largest underweight was consumer discretionary, reflecting higher inflation from the US/Israel war with Iran and potential AI related employment pressure.
On the May 29, 2026 episode of Mad Money, a caller named Patrick from Virginia brought Jim Cramer a problem most investors would love to have. He bought NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) back in 2017 when Jim Cramer called it “the stock of our generation,” and over the next eight years, the position grew to roughly 60% of his individual stock portfolio. Patrick has spent the past year actively trimming the position and asked Cramer whether GE Vernova (NYSE:GEV) made sense as a stock to diversify into.
Cramer’s answer doubled as both a green light on the new pick and a defense of the original thesis: “I still like NVIDIA very much. I’m not backing away from NVIDIA.”
The 60% Problem A single stock growing into majority control of a portfolio is the kind of outcome long-term investors fantasize about, and few know how to manage. Selling can be difficult because of taxes, conviction in the business, or simply the emotional attachment that comes from owning a major winner for years.
Patrick’s approach stood out because he spent a year trimming the position in stages. That allowed him to reduce concentration risk without abandoning a stock that helped build his portfolio in the first place.
Cramer’s Take on NVIDIA NVIDIA remains one of the market’s defining winners. The stock closed at $211.14 in the most recent session, giving the company a market capitalization of roughly $5.1 trillion. Shares have gained 51.7% over the past year and more than 13% year to date.
The business continues to produce results that support the bullish narrative. In Q1 FY2027, NVIDIA reported $81.6 billion in revenue, up 85.2% year over year, while Data Center revenue surged 92% to $75.25 billion. Management authorized an additional $80 billion in share repurchases.
CEO Jensen Huang described the demand environment in unmistakable terms: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” The AI boom that attracted investors years ago continues to drive growth across NVIDIA’s business today.
Why Cramer Likes GE Vernova Cramer also expressed enthusiasm for Patrick’s diversification target. “I think GE Vernova is absolutely terrific. We know that it’s come down nicely from its top. It’s at a very good level.” While GE Vernova has pulled back nearly 9% over the past month, the stock remains up more than 105% over the last year. The appeal goes beyond the recent price action.
The company sits on the other side of the AI buildout. While NVIDIA supplies the chips powering AI systems, GE Vernova provides much of the electrical infrastructure needed to run them. Data centers require enormous amounts of power, and demand for generation, transmission, and grid equipment has become one of the biggest secondary beneficiaries of the AI boom.
During Q1 2026, GE Vernova booked $2.4 billion of data center-related electrification equipment orders, surpassing the total recorded during all of 2025. Total orders climbed 71% organically to $18.3 billion, and management raised full-year free cash flow guidance to $6.5 billion to $7.5 billion.
GE Vernova would allow Patrick to reduce his concentrated NVIDIA position while maintaining exposure to the same long-term AI infrastructure theme.
A Market Looking for New Leaders Cramer ended the discussion with a broader observation about the market: “This market needs a few more catalysts to broaden it out besides the data center. Maybe we’ll get that in June. Got to hope so, because you can’t just keep trading the same stocks.”
A relatively small group of AI-related companies has driven a large portion of market gains and earnings growth expectations in recent years. For investors sitting on oversized winners, that means position sizing might deserve as much attention as stock selection.
GE Vernova's logo during the CERAWeek energy conference 2026 in Houston, Texas, U.S., March 24, 2026. REUTERS/Danielle Villasana/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesJudge upholds injunction requiring GE Vernova to continue turbine workGE Vernova claims right to terminate for non-payment by Vineyard WindVineyard Wind cites risk to project viability if GE exitsBOSTON, June 1 (Reuters) - A Massachusetts judge on Monday declined to lift an order that forced turbine supplier GE Vernova (GEV.N), opens new tab to continue work on the largest offshore wind farm in New England or to send its dispute with the $4.5 billion project's developer, Vineyard Wind, into arbitration.
Suffolk County Superior Court Judge Peter Krupp in Boston ruled, opens new tab that nothing had changed since he issued the injunction in April and that Vineyard Wind was contractually allowed to pursue its legal dispute in court in order to obtain urgent relief.
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The judge had issued a preliminary injunction requiring GE Vernova to continue work at the behest of Vineyard Wind, which sued GE Vernova after a subsidiary of the Cambridge, Massachusetts-based company sent it a notice threatening to terminate their agreement because it had not been paid $360 million.
Vineyard Wind, a joint venture between Spain's Iberdrola (IBE.MC), opens new tab and Denmark's Copenhagen Infrastructure Partners, argued that if GE was allowed to walk away and stop servicing the 806-megawatt project's 62 turbines, it would threaten its commercial viability.
GE Vernova has appealed Krupp's April injunction. But it also asked Krupp to reconsider it and send the case to arbitration, saying recent announcements by Vineyard Wind and state officials describing the wind farm as essentially complete showed it would not be irreparably harmed if GE exited the project.
But Krupp said those announcements did not change the fact that the project depends on GE's "expertise and proprietary know-how to bring the turbines up to operational capacity." Letting GE and its more than 200 employees and subcontractors walk off the job would jeopardize the project's financing, he said.
GE Vernova in a statement said it was proud of its work on the project and that it had the contractual right to terminate its agreements for non-payment. "We look forward to next steps," the company said.
Vineyard Wind did not respond to a request for comment.
Vineyard Wind's project off the coast of Martha's Vineyard began initial operations in February, after the developer convinced a federal judge a month earlier to block President Donald Trump's administration from halting construction.
The developer argues it is entitled to withhold hundreds of millions of dollars from GE Vernova's GE Renewables US LLC unit after one of the turbine blades in 2024 collapsed and fell into the waters off Nantucket.
That blade failure caused two years of delays after the manufacturing flaw that led to the failure was found to be widespread, requiring other blades to be replaced, Vineyard Wind says.
Reporting by Nate Raymond in Boston; Editing by Matthew Lewis
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Nate Raymond reports on the federal judiciary and litigation. He can be reached at [email protected].
Key Takeaways ETN is seeing strong AI data center demand, with Electrical Americas revenues up about 50% YoY. CAT plans to double output as data center power demand drives strong engine order levels.GEV benefits from AI-driven needs for gas turbines, grid upgrades and new power capacity. The artificial intelligence (AI) frenzy remains intact as the AI infrastructure space remains rock solid, supported by an extremely bullish demand scenario. Research firm McKinsey & Co. has estimated that global AI-powered data center infrastructure capex will reach around $7 trillion by 2030.
The four major hyperscalers raised their AI capital expenditure budget to $750 billion in 2026 from $670 billion estimated earlier. This figure is set to cross $1 trillion next year and is likely to rise further beyond 2027.
Besides tech stocks, several non-tech stocks are also flourishing this year supported by massive AI-powered data center infrastructure requirements. At this stage, we have identified five stocks that investors should keep a tab on for long-term price appreciation.
These stocks are: Eaton Corp. plc (ETN - Free Report) , Caterpillar Inc. (CAT - Free Report) , Freeport-McMoRan Inc. (FCX - Free Report) , GE Vernova Inc. (GEV - Free Report) and Alcoa Corp. (AA - Free Report) . Each of these stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of the five stocks mentioned above year to date.
Image Source: Zacks Investment Research
Eaton Corp. plcEaton is benefiting from strong electrification-driven demand, reflected in rising orders and an expanding backlog. The move toward higher-density AI infrastructure increases demand for grid-to-chip power and cooling solutions, which fits ETN’s electrical portfolio and recent cooling acquisition.
In first-quarter 2026, Electrical Americas data center revenues increased about 50% year over year, and management highlighted the Eaton Beam Rubin DSX platform developed with NVIDIA as an end-to-end blueprint for AI factories.
ETN also discussed progress toward direct-current architectures and solid-state transformer development, including quoting on higher-voltage DC projects and expecting orders in the second half of 2026 for later shipments.
Eaton has an expected revenue and earnings growth rate of 15.3% and 10.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.2% in the last 30 days.
Caterpillar Inc.Caterpillar is gaining from rising AI data-center-related power demand. As big technology companies establish data centers globally to support their generative AI applications, CAT is witnessing robust order levels for reciprocating engines for data centers. The company is planning to double its output with a multi-year capital investment.
CAT has also revised its target of growing Power Generation sales to more than 3.0X from the earlier stated 2.0X target by 2030. CAT announced another agreement to provide PROPWR up to 2.1 gigawatts of large gas generator sets for prime power generation in support of data center, oil and gas and industrial applications.
Caterpillar has an expected revenue and earnings growth rate of 13.2% and 29.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 7.8% in the last 30 days.
Freeport-McMoRan Inc.Freeport-McMoRan has been benefiting significantly from the massive growth of AI-powered data centers. FCX is a leading copper mining entity. The AI-powered data centers required a huge amount of copper, which is an essential component of power distribution, cooling networks, and dense server interconnections.
FCX’s mining operations are - North America copper mines, South America mining, Indonesia mining and Molybdenum. FCX’s copper production for 2025 was 3,383 million pounds. Indonesia, North America and South America accounted for roughly 39%, 31% and 30% of its copper production, respectively, in 2025.
Freeport-McMoRan has an expected revenue and earnings growth rate of 5.1% and 44.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.4% in the last 60 days.
GE Vernova Inc.GE Vernova stands to gain from global nuclear power energy momentum, particularly through its strong forte in producing SMRs. GEV cemented its standing as one of the biggest long-term winners in the AI-boosted energy boom across nuclear, natural gas, electrification, and grid expansion.
The rapid buildout of AI data centers is forcing utilities to upgrade transmission networks and add new generation capacity, especially natural gas plants that can provide reliable baseload power. This trend is creating strong demand for GEV’s gas turbines and grid solutions.
GE Vernova has an expected revenue and earnings growth rate of 19.1% and 71.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.2% in the last 30 days.
Alcoa Corp.Alcoa could be a potential dark horse for the AI-driven data center boom. Several critical data center units like cooling towers, server racks, radiators and many more are made out of aluminum. Solar panels, wind turbines and climatization units inside data centers are also built with aluminum.
The external economies of scale that AI-powered data centers will create for aluminum and other metal industries have not yet been revealed. Moreover, Alcoa is considering unlocking value from selling its temporarily or permanently closed sites with large existing power capacities, to big techs to convert them into AI data centers.
Alcoa has an expected revenue and earnings growth rate of 22% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 8.5% over the last 30 days.
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The AI power conversation is dominated by nuclear restarts and small modular reactor headlines. The electrons heating GPU racks today come from natural gas. I’ve been tracking the AI infrastructure buildout for over a year, and the picture keeps sharpening: gas is winning because it can be built behind the meter, at gigawatt scale, with build cycles measured in months.
Look at xAI’s COLOSSUS II, one of the world’s largest AI training data center clusters, powered by a self-built behind-the-meter gigawatt-scale natural gas power plant. Operators have explicitly said their ability to scale depends in part on continued access to natural gas supply at economically feasible prices, the availability of gas turbines and related equipment, and the maintenance of a regulatory environment that permits and supports the use of natural gas for large-scale power generation.
The macro setup is wild. U.S. electricity generation was effectively flat from 2008 to 2023 at a 0.1% CAGR, and growth between 2023 and 2025 has only modestly accelerated to under 3% annually. AI compute demand is exploding into a grid that forgot how to grow.
The pipelines are the toll road Kinder Morgan (NYSE:KMI | KMI Price Prediction) says approximately 70% of future data center power demand markets sit on its assets. The $10 billion backlog is approximately 90% natural gas and nearly 60% supporting power generation. CEO Kim Dang said "total demand for natural gas is expected to grow by 17% through 2030, led by LNG exports."
Williams Companies (NYSE:WMB) is running the same playbook. FY2025 Adjusted EBITDA hit a record $7.75 billion, up 9% YoY. CEO Chad Zamarin announced "Socrates the Younger," lifting power innovation capital to over $7 billion in execution, with the first project online in H2 2026. Shares are up 20% YTD.
The Appalachian producers EQT (NYSE:EQT) delivered a Q1 2026 stunner: adjusted EPS of $2.33 beat $2.16, revenue of $3.378 billion topped $3.24B, with record free cash flow of $1.83 billion. CEO Toby Z. Rice said "accelerating power demand growth in the United States – particularly in Appalachia – is creating incremental opportunities in our backyard." Fitch upgraded the credit to BBB.
Antero Resources crushed too, with EPS of $1.72 and revenue of $1.95B. Antero sells meaningful volumes along the LNG fairway. CNX Resources beat by a wide margin on EPS, with revenue that topped expectations.
The equipment chokepoint GE Vernova (NYSE:GEV) is the bottleneck nobody can route around. In Q1 2026 the Electrification segment booked $2.4 billion in equipment orders to support data centers, more than all of last year. Management raised the year-end 2026 combined gas turbine backlog target to at least 110 GW. Shares are up 48% YTD.
The bottom line Henry Hub spot near $3.10/MMBtu looks soft against the $5-plus realized prices producers tout, but the structural story is about volume growth. You’d want this thesis if you believe AI compute keeps outrunning the grid. If you think nuclear arrives in time, the urgency fades. I’m watching gas turbine lead times more closely than uranium spot.
Key Takeaways GE Vernova's Power orders jumped 59% organically to $10 billion in first-quarter 2026.GEV signed 21 GW of gas equipment orders, lifting backlog and slot reservations to 100 GW.Utilities are reserving turbine capacity years ahead as rising power demand tightens availability. GE Vernova Inc. (GEV - Free Report) is benefiting from the widening gap between global gas turbine demand and industry supply as utilities and power producers seek reliable generation capacity to support rising electricity consumption.
The company’s Power segment is experiencing strong momentum as demand for dispatchable power continues to accelerate. Artificial intelligence data centers, industrial electrification, and overall economic growth are all contributing to increased electricity demand. In the first quarter of 2026, Power orders increased 59% organically year over year to $10 billion, reflecting robust demand for gas power equipment and services.
GEV is also benefiting from increasing competition among utilities to secure gas turbine manufacturing slots. During the quarter, the company signed 21 gigawatts (GW) of gas equipment orders, helping expand its gas equipment backlog from 40 GW to 44 GW. Gas turbine slot reservations increased from 43 GW to 56 GW, bringing total backlog and slot reservations to 100 GW.
To secure access to turbine manufacturing capacity, utilities and independent power producers are increasingly making reservations years before their projects are scheduled for completion. With electricity demand forecasts continuing to rise, turbine availability has emerged as a key constraint across many power markets.
GE Vernova's gas power business is well positioned to capitalize on this trend due to its large installed base, global service network and manufacturing capabilities. The company’s Power segment provides gas, nuclear, and hydro technologies that support reliable and flexible electricity generation, helping customers address growing power demand while maintaining grid stability.
Companies Benefiting From Rising Power DemandAlongside GE Vernova, several other companies are also well positioned to benefit from rising electricity demand and the growing need for additional generation capacity. These are discussed below:
Constellation Energy (CEG - Free Report) continues to benefit from increasing demand for reliable baseload generation as data centers and large commercial customers seek long-term power supply agreements.
Vistra Corp. (VST - Free Report) is witnessing growing demand for its diversified generation portfolio as electricity consumption rises across several key U.S. markets.
GEV Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 EPS indicates an increase of 71.91% and that for 2027 EPS implies a decline of 19.94% year over year.
Image Source: Zacks Investment Research
GEV Stock Trading at a PremiumGEV is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 34.82X compared with the industry average of 21.36X.
Image Source: Zacks Investment Research
GEV Stock’s Price PerformanceIn the past three months, the company’s shares have risen 15.2% against the industry’s 0.8% decline.
Image Source: Zacks Investment Research
GEV’s Zacks RankThe company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GE Vernova (GEV - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this the energy business spun off from General Electric have returned -11.5% over the past month versus the Zacks S&P 500 composite's +5.4% change. The Zacks Alternative Energy - Other industry, to which GE Vernova belongs, has lost 4.7% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, GE Vernova is expected to post earnings of $3.01 per share, indicating a change of +61.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of $30.41 for the current fiscal year indicates a year-over-year change of +71.9%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $24.35 indicates a change of -19.9% 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.
For GE Vernova, the consensus sales estimate for the current quarter of $10.8 billion indicates a year-over-year change of +18.5%. For the current and next fiscal years, $45.32 billion and $51.77 billion estimates indicate +19% and +14.2% changes, respectively.
Last Reported Results and Surprise HistoryGE Vernova reported revenues of $9.34 billion in the last reported quarter, representing a year-over-year change of +16.3%. EPS of $1.98 for the same period compares with $0.91 a year ago.
Compared to the Zacks Consensus Estimate of $9.3 billion, the reported revenues represent a surprise of +0.47%. The EPS surprise was +7.61%.
Over the last four quarters, GE Vernova surpassed consensus EPS estimates three 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 F 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.
Key Takeaways MIR expands next-gen nuclear reach; radiation tech was selected for the Artemis II mission.BWXT won contracts worth more than $1.4B supporting the U.S. Naval Nuclear Propulsion Program.GEV benefits from AI-driven power demand, supporting gas turbines and grid solutions. Artificial intelligence (AI)-powered data centers are now growing by leaps and bounds. The AI infrastructure space remains rock solid, supported by an extremely bullish demand scenario. The galloping requirement of electricity for data centers has significantly boosted the demand for companies that have access to nuclear power.
This in turn has bolstered the demand for original equipment manufacturers (OEMs) in the nuclear energy space. Here we have selected three such OEMs that have a lucrative AI-powered product portfolio for nuclear energy.
These companies are: Mirion Technologies Inc. (MIR - Free Report) , BWX Technologies Inc. (BWXT - Free Report) and GE Vernova Inc. (GEV - Free Report) . The companies have solid price upside potential in the short term. Currently they carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of the three stocks mentioned above year to date.
Image Source: Zacks Investment Research
Mirion Technologies Inc. Mirion Technologies is actively involved in digital innovation, particularly within the nuclear and radiation safety sectors. The company focuses on integrating digital technologies into its radiation safety solutions.
MIR is committed to expanding its reach in the next generation of nuclear energy by working with small modular reactor developers to solve essential nuclear measurement, safety and security challenges.
In March 2026, MIR highlighted a major milestone as its advanced radiation monitoring technology was selected for Artemis II. The company’s Crew Active Dosimeters will be carried by astronauts during the mission, providing real-time radiation exposure data. This achievement underscores MIR’s strong position in high-reliability applications, particularly in space and defense.
Mirion Technologies has an expected revenue and earnings growth rate of 23.1% and 21.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.8% over the last 60 days.
The short-term average price target of brokerage firms represents an increase of 56.7% from the last closing price of $17.81. The brokerage target price is currently in the range of $26-$29. This indicates a maximum upside of 62.8% and no downside. The risk/reward ratio is extremely favorable.
BWX Technologies Inc.BWX Technologies operates across nuclear technologies, reactor systems and precision manufacturing solutions supporting government and commercial nuclear activities. BWXT develops nuclear reactors, fuel-related systems and specialized components used in nuclear operations and advanced technology programs. BWXT also continues to aid nuclear infrastructure programs tied to long-term reactor and energy system requirements.
BWXT benefits from sustained demand for nuclear propulsion and reactor-related programs. In May 2026, the company secured contracts valued at more than $1.4 billion supporting the U.S. Naval Nuclear Propulsion Program. The awards include long-lead material procurement, reactor system components and manufacturing work tied to nuclear-powered naval platforms, strengthening BWXT’s position in a critical segment of the nuclear industry.
BWX Technologies has an expected revenue and earnings growth rate of 17.8% and 17%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2% over the last 30 days.
The short-term average price target of brokerage firms represents an increase of 23.9% from the last closing price of $188.39. The brokerage target price is currently in the range of $200-$250. This indicates a maximum upside of 35.4% and no downside. The risk/reward ratio is extremely favorable.
GE Vernova Inc.GE Vernova stands to gain from global nuclear power energy momentum, particularly through its strong forte in producing SMRs. GEV cemented its standing as one of the biggest long-term winners in the AI-boosted energy boom across nuclear, natural gas, electrification, and grid expansion.
The rapid buildout of AI data centers is forcing utilities to upgrade transmission networks and add new generation capacity, especially natural gas plants that can provide reliable baseload power. This trend is creating strong demand for GEV’s gas turbines and grid solutions.
GE Vernova has an expected revenue and earnings growth rate of 19.1% and 71.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.2% in the last 30 days.
The short-term average price target of brokerage firms represents an increase of 29% from the last closing price of $950.54. The brokerage target price is currently in the range of $836-$1,400. This indicates a maximum upside of 47.3% and a downside of 12%. The risk/reward ratio is 1:3.9.
In the latest trading session, GE Vernova (GEV - Free Report) closed at $959.36, marking a -1.06% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 1.21%, and the tech-heavy Nasdaq lost 0.89%.
The the energy business spun off from General Electric's stock has dropped by 11.46% in the past month, falling short of the Oils-Energy sector's loss of 2.67% and the S&P 500's gain of 5.39%.
Market participants will be closely following the financial results of GE Vernova in its upcoming release. The company's upcoming EPS is projected at $3.01, signifying a 61.83% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $10.8 billion, indicating a 18.49% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $30.41 per share and revenue of $45.32 billion, which would represent changes of +71.91% and +19.05%, 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 remained steady. GE Vernova currently has a Zacks Rank of #3 (Hold).
Looking at valuation, GE Vernova is presently trading at a Forward P/E ratio of 31.89. This denotes a premium relative to the industry average Forward P/E of 17.54.
It is also worth noting that GEV currently has a PEG ratio of 1.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Alternative Energy - Other industry had an average PEG ratio of 2.3 as trading concluded yesterday.
The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
GE Vernova GEV is taking another step into India's wind market after signing an agreement with Powerica to supply 28 of its 3.8 MW–154m onshore wind turbines for the 100 MW Botad wind farm in Gujarat. The deal also marks the India debut of GE Vernova's 3.8 MW workhorse turbine, giving investors a fresh signal that the company is still building its onshore wind footprint in one of the world's key renewable energy markets.
Under the agreement, GE Vernova will handle turbine supply and installation, while deepening a Powerica partnership that has already delivered four wind farm projects together. The turbines will be supplied from GE Vernova's Pune plant in India, with deliveries expected to begin in Q4 2026, possibly making local production an important part of the project's execution story.
The regulatory piece may matter just as much. GE Vernova said it has been certified by India's Ministry of New and Renewable Energy and added to the Approved List of Models and Manufacturers of Wind Turbines, a mandatory requirement for wind turbine OEMs participating in India's wind market. For investors, that approval could position GE Vernova to compete more effectively as India continues opening opportunities in wind power.
Key Takeaways GEV gained 47.2% YTD, driven by rising electricity demand and power infrastructure opportunities.GEV won a 100 MW India wind project and gained approval to pursue more wind opportunities.GEV expects tariff-related costs of $250-$350 million in 2026 despite mitigation efforts. GE Vernova Inc.’s (GEV - Free Report) shares have risen 47.2% year to date, outperforming its Zacks Alternate Energy – Other industry’s growth of 17.1%. The company is benefiting from a growing imbalance between global gas turbine demand and available industry supply, as utilities and independent power producers increasingly pursue reliable generation capacity to meet surging electricity demand.
Image Source: Zacks Investment Research
Other alternative energy stocks, such as Crescent Energy Company (CRGY - Free Report) and Bloom Energy (BE - Free Report) , have also outperformed the industry during the same period. Shares of Crescent Energy and Bloom Energy have risen 45.4% and 234.2%, respectively.
Considering GE Vernova’s outperformance, investors might be left wondering if this is a good time to add GEV stock to their portfolio. Let's examine the factors that contributed to the share price gain and assess the stock's investment prospects to make an informed decision.
Factors Acting in Favor of GEVGE Vernova is working to improve profitability in its wind business through cost controls, better project selection, and operational improvements. Rising electricity demand, driven by data center expansion and AI adoption, is creating growth opportunities across its gas turbine, grid solutions and power infrastructure businesses.
In June 2026, GE Vernova secured an order from Powerica Limited to supply 28 of its newly launched 3.8 MW-154m onshore wind turbines for the 100 MW Botad Wind Farm in Gujarat. It represents GE Vernova’s efforts to expand its onshore wind portfolio in one of the world's fastest-growing renewable energy markets.
The company also received approval under India's Approved List of Models and Manufacturers, a mandatory certification for wind turbine manufacturers participating in the Indian market. This approval effectively allows GE Vernova to compete for a broader range of wind projects across the country.
In May 2026, GE Vernova announced that it has signed a definitive agreement to acquire Robotech Automation. Robotech specializes in robotics integration, automation engineering, and customized manufacturing solutions, and has already been working with GE Vernova on projects within its supply chain and factories. The acquisition is intended to accelerate GE Vernova's robotics and automation capabilities across its manufacturing network.
In May 2026, GE Vernova and ENKA announced the start of commercial operations at the 852 MW K??rklareli power plant in K??rklareli. This validates the company’s advanced 9HA.02 gas turbine technology in a new international market, strengthening its reputation for high-efficiency power generation. The K??rklareli plant is expected to operate at more than 63% efficiency, making it one of the country’s most efficient gas plants and showcasing GE Vernova’s ability to help modernize aging power infrastructure.
Challenges Facing GEVThe company relies on complex global supply networks for components used in its gas turbines, wind turbines and grid infrastructure. It purchases nearly $20 billion in materials and components sourced from more than 100 countries. Disruptions in the availability of raw materials, along with logistical delays, have affected and may adversely impact GE Vernova’s production timelines and raise its input costs, hurting its bottom line.
Throughout 2025 and 2026, the United States and other countries imposed global tariffs, resulting in additional costs. The current estimated total cost impact of these global tariffs is nearly $250-$350 million in 2026, after taking into account contractual protections and mitigating actions.
GEV Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an increase of 109.29% over the past 60 days. GEV’s long-term (three to five years) earnings growth rate is 18%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Crescent Energy’s 2026 EPS indicates an increase of 28.65% in the past 60 days. The bottom-line estimate for Bloom Energy’s 2026 EPS implies an increase of 50.39% in the past 60 days.
GEV’s Earnings Surprise HistoryThe company beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 83.61%.
Image Source: Zacks Investment Research
GEV’s Return on Equity Higher Than IndustryThe company’s trailing 12-month return on equity of 43.97% is higher than the industry average of 6.94%. Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.
Image Source: Zacks Investment Research
GEV Stock Trades at a PremiumGE Vernova is currently trading at 34.63X, a premium compared to its industry’s 21.38X on a forward 12-month P/E basis.
Image Source: Zacks Investment Research
What Should Investors Do Now?GE Vernova is benefiting from rising electricity demand driven by data centers and AI-related power needs. The company is also strengthening its growth prospects through expansion in India's wind market, broader eligibility for renewable projects, and successful deployment of advanced gas turbine technology in international power infrastructure projects.
Given its current premium valuation, new investors may prefer to wait for a better entry point. Those who already have this stock may stay invested, considering its earnings growth and strong ROE. GEV currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GE Vernova (GEV +4.58%) is the world's largest manufacturer of natural gas turbines. The company is firing on all cylinders, winning several orders in recent weeks and raising its 2026 guidance in late April after a staggering 71% surge in first-quarter orders.
Yet, the stock slumped 10.6% in May, according to data provided by S&P Global Market Intelligence, and has extended those losses further in June.
This begs the question: Is there something beneath the surface that investors are missing?
Image source: Getty Images.
GE Vernova is growing rapidly Every operational update coming from GE Vernova in recent weeks underscores stellar growth. Its gas power equipment backlog and slot reservation agreements (SRA) jumped from 83 gigawatts (GW) to 100 GW, with management expecting to cross 110 GW by the end of the year.
SRAs are binding contracts in which power producers deposit 20% to 25% of a turbine's total value upfront just to lock in future manufacturing capacity. Led by artificial intelligence (AI) data centers, demand is so intense that GE Vernova's production lines are full for years. Customers looking for a new natural gas turbine today face a waiting list stretching to 2029, forcing utility providers to aggressively secure manufacturing slots for 2029 and 2030 right now.
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GE Vernova's total backlog hit $263 billion in Q1, and it now projects 18% revenue growth at the midpoint for 2026.
So what's going on with the stock price? Two developments seem to have stalled its recent momentum.
Why GE Vernova stock is falling, and what you should do At the Bernstein Strategic Decisions Conference in late May, GE Vernova CEO Scott Strazik sounded a cautious note regarding data center power projects. Strazik pointed out how more U.S. states are beginning to push back against new data centers because of factors such as severe grid strain and subsequent electricity rate hikes. Some of GE Vernova's customers are even struggling to advance and complete projects due to mounting local and regulatory hurdles.
Wall Street perceived Strazik's comments as a reality check. Because GE Vernova stock was already trading at a massive premium after a meteoric 255% rally in the one year through April 2026, any hint of slower project execution became an immediate trigger for investors to lock in profits.
Meanwhile, GE Vernova's legal dispute with Spain's Iberdola over the Vineyard Wind offshore project has escalated. GE Vernova attempted to exit the project, citing $360 million in unpaid invoices, but the developer countersued to block the exit, claiming over $1 billion in damages and losses from a 2024 wind turbine blade failure. A Massachusetts judge has now ordered GE Vernova to stay on the job or settle the dispute through arbitration.
While the dispute may have exacerbated the decline in GE Vernova stock, it is not a structural concern. Instead, the drop is mainly profit-taking after a massive run. Given the company's leadership in electrification and its massive backlog, GE Vernova remains an incredibly strong long-term play and a buy on every pullback.
The major driver of the stock market right now, and a huge contributor to economic growth, is the massive investment in artificial intelligence (AI) infrastructure -- primarily AI data centers -- by the so-called hyperscalers.
Hyperscalers are enormous technology companies that are borrowing and spending hundreds of billions of dollars a year to build AI data centers, including the big four: Meta Platforms, Microsoft, Amazon, and Alphabet. There are others, of course, but those four have more than tripled their capital expenditures (capex) on AI infrastructure over the last five years.
Companies worldwide spent almost $1 trillion on data centers last year, according to McKinsey & Company. That's projected to reach $4 trillion by 2030.
I would be surprised if that figure is not revised higher over the coming months and years -- many times. As Apollo noted in a recent research report, estimates of capital expenditures on data centers have risen multiple times over the past year.
Image source: Getty Images.
If those forecasts are even partly true, AI capex will continue to drive economic growth and sustain the bull market for several years.
I wouldn't attempt to predict which of the four companies above will win this arms race to be the dominant provider of AI compute. But I am confident that the construction, maintenance, and ongoing scaling of these AI facilities will require substantial inputs. Namely, electricity, memory capacity, copper, and certain types of electronic components.
So, I've come up with a short list of companies providing those inputs, most of which are already seeing their revenue, profits, and share prices soar due to demand from data center spending. These should all be great stocks to buy and hold for at least the next five years.
Copper is indispensable, and demand is soaring First, there's copper. A traditional data center requires between 5,000 and 15,000 tons of copper. AI data centers, in contrast, can need up to 50,000 tons of copper per facility, according to the Copper Development Association. As a result, the spot price of the red metal has increased from about $486 per pound one year ago to around $656 a pound today. That's a 35% increase.
A great way to play that is the Global X Copper Miners ETF (COPX +7.37%), which tracks an index of global companies engaged in copper exploration, mining, and refining. It has more than doubled in price over the past year.
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Next is power. Data centers are a huge new burden on the electric grid and are driving significant investment to bring more power online. The World Resources Institute estimates that global transmission and distribution infrastructure will need to double by 2050 to accommodate the world's power needs. GE Vernona (GEV +4.58%) is a leader in gas and steam turbines for power plants, wind turbines, and grid components. The stock is up 85% over the past year.
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AI data center demand for memory is insatiable The third major input is memory. Data centers have an insatiable need for it. Micron Technology (MU +11.48%) makes the dynamic random-access memory (DRAM) and NAND memory they need, and there's a global supply shortage, which has sent prices of DRAM and NAND chips soaring. As a result, the stock is up more than 900% over the past 52 weeks and recently entered the $1 trillion market-cap club.
Sandisk (SNDK +14.50%) makes the flash memory products that data centers also need in large volumes. Its products are generally solid-state drives that "hold" the memory so other chips, such as DRAM, can access it. The stock has soared more than 650% so far in 2026.
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Certain other electronic components are also necessary for any data center. Taiyo Yuden (TYOYY +18.27%), a Japanese company, manufacturers multilayer ceramic capacitors (MLCCs), which regulate power flow in electronic devices and are a critical component in data centers. A single Nvidia circuit board can require more than 6,000 MLCCs, and there is currently a global supply shortage of them. Goldman Sachs expects MLCC demand from AI servers to at least quadruple by 2030, while industry capacity is rising by about 10% per year. Taiyo Yuden's share price has soared more than 550% over the past year.
Finally, a bonus sixth pick for this AI-infrastructure inputs portfolio, and this one is rarely thought of as an AI-related company. I'm talking about Caterpillar (CAT +4.84%), maker of construction and farm equipment. Each data center construction project requires significant excavation, land clearing, and construction equipment, and CAT has the size and scale to handle the new level of demand. The stock is up 165% over the past year.
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There you have it. A six-stock AI pick-and-shovel portfolio for the next five years.
AI infrastructure demand remains robust, driving hyperscalers to increase capex and fueling bottlenecks in CPUs, memory, and energy supply. AMD, Micron, and GE Vernova are identified as top AI bottleneck stocks, each positioned for accelerated growth in their respective segments. I maintain a Strong Buy on AMD and MU and plan to initiate a position in GEV, using the current market pullback to increase exposure.
A $10,000 position in Fidelity Clean Energy ETF (NYSEARCA:FRNW) on the last trading day of 2025 was worth about $13,330 by the close on June 4, 2026, a 33% run in a little over five months. The same money in SPY would have grown to about $11,100, an 11% return over the identical window. FRNW has roughly tripled the S&P 500 year to date, which is the kind of headline that draws a crowd, and almost none of it is happening for the reason the fund’s name suggests.
The Arithmetic of a Quiet Fidelity Run FRNW is a small, plain-vanilla index ETF from Fidelity’s Covington Trust lineup, with a 0.39% net expense ratio and just $63.75 million in net assets as of the March 31, 2026 NPORT filing. The fund opened the year at $20.30 and closed June 4 at $27.06. Over the trailing twelve months the move is even more striking, about 84% versus the S&P 500’s about 27%. Five-year returns tell a more honest story about the category, with FRNW up just about 11% since October 2021 while the S&P 500 returned about 79% over the same horizon. Clean energy has been the place capital went to die for most of this decade. Something changed.
The change driving the run is electricity demand from data centers, and FRNW happens to own the picks-and-shovels names that sell into that demand.
What Is Actually Doing the Work FRNW’s biggest U.S. equity position is GE Vernova (NYSE:GEV | GEV Price Prediction) at 4.42% of net assets, and GEV is up 47.59% year to date. GE Vernova’s Q1 2026 report is the document that explains the ETF. The company booked $18.3 billion in orders, up 71% organically, and called out $2.4 billion of Electrification equipment orders for data centers in a single quarter, which exceeded all of 2025. CEO Scott Strazik told investors that "demand is accelerating for our Power and Electrification solutions from a diverse set of customers, with our backlog growing by more than $13 billion quarter-over-quarter." Management raised 2026 revenue guidance to $44.5 billion to $45.5 billion and free cash flow to $6.5 billion to $7.5 billion. The stock trades at 28x trailing earnings and 34x forward, with analysts carrying a consensus target of $1,216.
Ormat Technologies (NYSE:ORA), a 2.67% FRNW position, is up 29.21% YTD on the same thesis dressed in different clothes. Ormat sells geothermal baseload, which is exactly what a hyperscaler needs when its data center wants 24/7 carbon-free electrons and a 15-year price lock. In Q1 the company posted revenue of $403.9 million, up 75.8% year over year, with adjusted EPS of $1.30 against a $0.90 consensus. CEO Doron Blachar tied the run directly to the AI buildout, citing "a 15-year portfolio PPA of up to 150MW to supply Google’s data center electricity needs through NV Energy, and a 20-year agreement with Switch for approximately 13MW from the Salt Wells power plant." The stock now trades at a steep 70x earnings, which is the part of the story Wall Street is still arguing about.
First Solar (NASDAQ:FSLR) sits at 4.14% of the fund and is up 20.56% YTD, with most of that move concentrated in the past month. The thesis here is policy more than physics. First Solar’s Q1 2026 guidance assumes $2.10 billion to $2.19 billion of Section 45X manufacturing tax credits this year, all of which flow to the bottom line. CEO Mark Widmar framed the competitive position around "a domestic manufacturing footprint, and independence from Chinese crystalline silicon supply chains." Q1 revenue of $1.04 billion came with a 50% adjusted EBITDA margin, which is what happens when Washington pays you to build solar panels in Louisiana.
And then there is the lottery ticket. Plug Power (NASDAQ:PLUG) is a tiny 1.52% of the fund but is up 82.74% YTD off a depressed base, and up 287% over the trailing year. Q1 GAAP gross margin came in at negative 13%, which sounds terrible until you remember it was negative 55% a year earlier. New CEO Jose Luis Crespo is targeting positive EBITDAS in Q4 2026. Reddit’s wallstreetbets crowd noticed in May, with sentiment scores running 82 to 88 on a short-squeeze thesis. PLUG still burns ~$150 million of operating cash a quarter, which is the part the squeeze chatter tends to leave out.
The Unifying Tailwind, Not the Sentiment Trade What ties these four names together is one chart from the EIA. The Annual Energy Outlook 2026 notes that after 15 years of nearly flat U.S. electricity consumption, demand has increased by 2.1% per year, on average, over the last five years, with data center server energy projected to grow more than 16 times its 2020 level by 2050 in the high-demand case. Hyperscalers are signing 15- and 20-year contracts for electrons today because they cannot wait three years for a grid interconnect tomorrow. FRNW happens to own grid equipment makers, geothermal developers, domestic solar manufacturers, and a hydrogen call option. The fund’s index construction got lucky on what would matter in 2026.
The international portion of the book has not been the story. Vestas Wind Systems is FRNW’s largest position at 5.15%, with Ørsted, EDP, Acciona, and a handful of Chinese solar names rounding out the geography. Several of those have been dead money. The U.S. names did the lifting.
What Would Have to Hold for a Repeat The conditions that produced this run are intact but no longer cheap. GE Vernova has tripled off the March 2024 spinoff price of $130.77 and now trades at 98x EV/EBITDA, a multiple that requires the data center order book to keep growing at the pace it did in Q1. Ormat at 70x earnings needs each new hyperscaler PPA to ratify the multiple. First Solar’s earnings depend on Section 45X surviving in its current form, and the One Big Beautiful Bill Act of 2025 leaves the credits intact through 2030 with a phase-out through 2033. That cliff is the single most important policy date in this fund.
Two macro variables matter most for what comes next. The 10-year Treasury sits at 4.49%, in the 95th percentile of its trailing 12-month range, and renewable developers are the most rate-sensitive cohort in the market because their projects are bond-like. A sustained move back toward the May 19 peak of 4.67% would chip away at the relief rally that started in late winter. The other variable is the hyperscaler capex line, which is the actual demand signal. Track GE Vernova’s quarterly Electrification book-to-bill, currently ~2.5x, and Ormat’s new PPA announcements. Those two data points are the leading indicators that drove the move and will drive the next one.
One last thing worth saying out loud. FRNW has $63.75 million in net assets and 13.9% sitting in cash as of the March filing. This is a small fund that benefited from owning the right names in a regime where AI capex turned into power capex. The mechanism is structural and durable. The valuations the mechanism produced are stretched. If you are walking in now, you are paying for the data center thesis, not the clean energy one, and the price tag reflects it.
Key Takeaways GE Vernova's Electrification orders rose 86% organically to $7.1 billion in first-quarter 2026.GE Vernova's Electrification backlog topped $42 billion amid grid modernization demand.GEV's Electrification EBITDA margin expanded to 17.8% from 11.1% a year earlier. GE Vernova Inc.’s (GEV - Free Report) Electrification segment is benefiting from several long-term trends, including accelerating electricity demand, industrial electrification, grid expansion and the rapid buildout of artificial intelligence data centers. These trends are driving substantial investment in transmission networks, substations, grid automation technologies and power conversion equipment.
The momentum was evident in the first quarter of 2026. Electrification orders increased 86% organically year over year to $7.1 billion, while revenues climbed 61%. Growth was broad-based across the segment's portfolio, including power transmission equipment, grid solutions and electrification technologies.
The Electrification segment's backlog exceeded $42 billion at the end of the first quarter, reflecting continued customer demand for transmission infrastructure and grid modernization projects. Utilities around the world are investing in new transmission capacity to connect power generation assets and improve grid reliability as electricity consumption continues to rise.
Profitability is improving alongside growth. Electrification EBITDA more than doubled from the prior-year period, while EBITDA margin expanded to 17.8% from 11.1% a year ago. The improvement reflects higher volumes, favorable pricing, improved project execution and a greater mix of higher-margin products and services.
GEV invested $0.4 billion in capital expenditures, including initiatives to expand production capacity in its Power and Electrification businesses. This investment is part of the company's commitment to deploy $6 billion between 2025 and 2028, including $1 billion from Prolec GE during the 2026-2028 period.
With demand strengthening across multiple end markets, the Electrification segment is becoming an increasingly important contributor to GE Vernova's growth and profitability profile.
Companies Benefiting From Electrification TrendsAlongside GE Vernova, several other companies positioned to benefit from rising electricity demand and power infrastructure investments are discussed below.
Eaton Corporation (ETN - Free Report) continues to benefit from growing demand for electrical equipment, power management systems and data center infrastructure as utilities and industrial customers expand capacity.
NextEra Energy, Inc. (NEE - Free Report) is investing heavily in transmission infrastructure, renewable generation and grid expansion projects to support growing electricity demand across its service territories and renewable energy business.
GEV Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 EPS indicates an increase of 72.81% and that for 2027 EPS implies a decline of 20.27% year over year.
Image Source: Zacks Investment Research
GEV Stock Trading at a PremiumGEV is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 33.48X compared with the industry average of 21.04X.
Image Source: Zacks Investment Research
GEV Stock’s Price PerformanceIn the past six months, the company’s shares have risen 49.3% compared with the industry’s 3% growth.
Image Source: Zacks Investment Research
GEV’s Zacks RankThe company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GE Vernova (GEV - Free Report) closed at $920.15 in the latest trading session, marking a -1.47% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.26% for the day. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq decreased by 0.97%.
Shares of the the energy business spun off from General Electric have depreciated by 12.98% over the course of the past month, underperforming the Oils-Energy sector's gain of 0.73%, and the S&P 500's gain of 0.23%.
Market participants will be closely following the financial results of GE Vernova in its upcoming release. The company is expected to report EPS of $3.11, up 67.2% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $10.78 billion, indicating a 18.29% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $30.57 per share and revenue of $45.31 billion, indicating changes of +72.81% and +19.02%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for GE Vernova. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.02% increase. GE Vernova is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, GE Vernova is currently being traded at a Forward P/E ratio of 30.55. For comparison, its industry has an average Forward P/E of 17.25, which means GE Vernova is trading at a premium to the group.
We can additionally observe that GEV currently boasts a PEG ratio of 1.7. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Alternative Energy - Other industry had an average PEG ratio of 2.08 as trading concluded yesterday.
The Alternative Energy - Other industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 109, this industry ranks in the top 45% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow GEV in the coming trading sessions, be sure to utilize Zacks.com.
The plan brings together government agencies, national laboratories, universities and private companies under a coordinated effort to accelerate commercialization.
For investors, the roadmap does more than provide a timeline. It offers clues about which parts of the market could benefit if fusion moves from scientific ambition to industrial reality.
AI And Computing InfrastructureOne of the clearest themes running through the roadmap is the importance of advanced computing.
The DOE identified artificial intelligence, high-performance computing and advanced research tools as critical technologies needed to close the remaining scientific and engineering gaps standing between today’s experiments and tomorrow’s fusion power plants.
That puts companies such as Nvidia Corp. (NASDAQ:NVDA) squarely in the conversation.
Fusion developers increasingly rely on AI models, simulations, digital twins and advanced computing systems to model plasma behavior, optimize reactor designs and accelerate materials research. While Nvidia is best known for powering the AI boom, the same computational infrastructure could become an important part of the fusion ecosystem.
Building The Physical InfrastructureThe roadmap’s second major focus is infrastructure.
Commercial fusion will require massive investments in power systems, cooling, grid equipment and industrial facilities capable of supporting next-generation reactors.
GE Vernova is already a key beneficiary of rising electricity demand from AI data centers. Vertiv supplies critical power and cooling infrastructure. Siemens Energy and Schneider Electric are major players in power transmission, grid modernization and industrial electrification.
While none of these companies are pure-play fusion bets, they operate in areas the DOE specifically highlighted as necessary for scaling future fusion deployment.
The Nuclear ConnectionThe roadmap also underscores the importance of closing technology gaps in materials, engineering and reactor systems.
That could draw attention to companies with deep expertise in nuclear technologies and advanced reactor development.
BWX Technologies Inc. (NYSE:BWXT), which supplies nuclear components and services to both government and commercial customers, is one name investors may watch as fusion development progresses.
Fusion differs fundamentally from traditional nuclear fission, but many of the engineering, manufacturing and regulatory capabilities needed to support a future fusion industry overlap with areas where established nuclear players already have experience.
From Research Project To Industrial StrategyThe DOE noted that more than $10 billion in private capital has already been invested in fusion companies and demonstration projects.
Perhaps the biggest takeaway from the roadmap is not the specific technologies involved but the shift in mindset. For decades, fusion was treated primarily as a scientific challenge. The DOE’s latest roadmap reads more like an industrial policy document, focusing on supply chains, workforce development, infrastructure and commercialization pathways.
The agency’s goal of supporting fusion pilot plants and commercial deployment in the mid-2030s remains ambitious, and officials acknowledged progress will depend on future public-private partnerships and congressional funding.
Still, the roadmap sends a clear signal: Washington is no longer planning for fusion as a distant possibility. It is beginning to plan for commercialization.
And if that timeline holds, investors may increasingly look beyond fusion startups themselves and toward the companies supplying the computing power, energy infrastructure and nuclear expertise needed to make it happen.
Image via Shutterstock
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NuScale Power (SMR +3.01%) is an ambitious nuclear energy company at the forefront of a potential nuclear renaissance. In a world hungry for clean energy -- hungry for energy, period -- NuScale has a tremendous opportunity to solidify its lead in the development of small modular reactor (SMR) technology.
Yet despite being near the center of a multitrillion-dollar market opportunity for nuclear power -- an opportunity driven by artificial intelligence (AI), cloud computing, data center construction, and wider electrification efforts -- NuScale also faces challenges. The company is still reporting losses -- a net loss of about $44 million in the first quarter -- and hasn't yet seen its technology deployed in the real world. Soon, its potential market could also get crowded with similar companies competing for the same business, like Oklo.
The stock has taken a dive lately, falling over 75% from its recent all-time high. It's the only nuclear company in the U.S. with approval from the Nuclear Regulatory Commission (NRC) to deploy SMR technology for commercial use, but is that first-mover advantage enough to make this nuclear energy stock a long-term buy?
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First-mover advantage, commercial growing pains NuScale Power sits at the intersection of two powerful trends in energy: first, the global push for clean energy; and second, the rapid construction of AI infrastructure, including data centers, whose power needs in some areas largely surpass the capacity of local grids.
Electricity generated from nuclear energy does not emit carbon dioxide, at least not directly. But given the pace at which AI infrastructure is moving, the typical huge nuclear plant simply takes too long to construct. It can take a decade or longer to build a conventional nuclear power plant. A hyperscaler's data center, on the other hand, can take 12 to 36 months.
Image source: Getty Images.
Which brings us back to NuScale. NuScale's reactors are smaller than traditional nuclear power plants and should take less time to deploy. The company says so itself: On its website, it claims its SMR technology can be operational in 36 months. With thousands of data centers being planned or built across the U.S., NuScale's SMR technology seems ripe for a breakout.
And yet, the company hasn't yet inked a sale of its technology.
One reason for this could be related to costs. Nuclear engineering is notorious for cost inflation, and a new technology such as NuScale's likely requires components and parts that can't be manufactured at scale. This was one of the reasons its project in Idaho was canceled in 2023, as costs were getting out of hand.
NuScale isn't completely up a creek without a paddle. It has two projects in different phases of planning, one in Romania, and another with the Tennessee Valley Authority. It has also entered a binding partnership with ENTRA1 Energy, a private energy development company, which will handle the development, financing, and operation of NuScale's SMR plants.
If NuScale eventually becomes the default provider of SMR technology, today's investors could notch a substantial gain over the long run. But NuScale is a speculative stock, and there's no guarantee its technology will be adopted. Expect this stock to trade on sentiment in the near term -- possibly dipping lower than today's price -- until clearer revenue streams open up.
George Gianarikas, an analyst at Canaccord Genuity, is a big fan of NuScale Power (SMR +3.01%), one of the most popular nuclear energy stocks on the market today. This month, he reiterated his "buy" recommendation on the stock, reaffirming his $25 price target. If his predictions come to pass, NuScale shares could have more than 100% upside over the next 12 months.
Is this Wall Street analyst warranted in his bullishness? Let's find out.
Does NuScale stock really have 107.1% upside potential? The first thing to get out of the way is that predicting short-term fluctuations in stock prices is a very challenging game. Most Wall Street analysts have so-so track records when it comes to setting 12-month price targets. It's for that reason that you frequently see these price targets adjusted throughout the year, often following big upward or downward price action.
That said, Wall Street analysts spend a lot of time -- indeed, nearly their entire workdays -- trying to figure out where a certain stock price is headed. So listening to their conclusions is worthwhile, as long as their advice isn't followed blindly.
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Right now, Gianarikas is one of the most bullish analysts covering NuScale stock. In total, 15 analysts currently cover the stock, with an average price target of just $15.67 -- far below Gianarikas's $25 price target. What makes Gianarikas so bullish? He apparently is a big fan of the company's project pipeline, as well as its specific approach to nuclear energy.
NuScale isn't just any nuclear developer. It specializes in small modular reactors, or SMRs, which, in theory, can be built faster and at a lower initial price point than larger conventional nuclear power systems. This makes NuScale's technology a better fit to meet rising electricity demand in the U.S. and abroad -- a trend driven by the massive build-out of energy-intensive data centers.
Whereas SMR competitors like Oklo are focused on so-called "microreactors" that can be placed directly adjacent to data centers, NuScale is focused on larger, grid-scale applications like its deal in the U.S. with the Tennessee Valley Authority (TVA), or its deal in Romania with RoPower.
Gianarikas specifically called out the promise of TVA as a long-term partner in a recent note to investors. Reports suggest that he views this deal as a "transformative opportunity that could significantly accelerate NuScale's path to commercialization and scale." In the same note to investors, Gianarikas praised NuScale's deal with RoPower. Reports say that he views this project as "validation of NuScale's technology and global appeal."
Image source: Getty Images.
I agree with all of the bullish points made by Gianarikas. But that doesn't mean that I also see 107.1% upside over the next 12 months. And there's one major reason why.
"Despite acknowledging execution and operational risks, [Gianarikas] maintains confidence in NuScale's long-term prospects and values the stock using a DCF framework with a 14% WACC and 5% terminal growth rate, supporting an unchanged $25 price target and continued Buy rating," concluded one report after Gianarikas reiterated his price target.
These so-called "execution and operational risks" are what keep me on the sidelines regarding NuScale stock today. These risks are at least partially offset by Gianarikas's high discount rate, but even that elevated rate is arguably too generous.
Put simply, the bull and bear cases for NuScale are very asymmetric. The bull case sees the company execute on all its current pipeline on time and on budget, with more partners filling the pipeline quickly following successful case studies. Conversely, there could be delays or cost overruns, pushing the company's path toward profitability and resulting in massive shareholder dilution.
NuScale Power remains a very promising business in the long term. But predicting the company's share price over the next 12 months is next to impossible. Don't jump in unless you're willing to accept both heavy volatility and a very extended holding period.
CORVALLIS, Ore.--(BUSINESS WIRE)--NuScale Power Corporation (NYSE: SMR) welcomed two new members, Mr. Stuart A. Harshaw and Dr. Dale E. Klein, to its Board of Directors.
NuScale Power (SMR +3.01%) just reported earnings in early May. No shocking disclosures were revealed, but the nuclear stock did drop some nuggets worth paying attention to.
The two biggest updates dealt with the two biggest projects in NuScale's pipeline: a 6 gigawatt nuclear system in the U.S., and a 462 megawatt system in Romania. Neither of these projects have entered the construction phase. In fact, both are still waiting for clear financing updates that will clear up how exactly these projects will be paid for.
Until those financing decisions are finalized, the market will price NuScale stock at a discount given the extreme remaining uncertainty that these small modular reactor (SMR) systems will ever see the light of day. Here's the thing: We could gain a lot of clarity regarding these concerns by November of this year.
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Here's why NuScale Power stock is a buy before November NuScale Power is set to release its next earnings sometime in August. The following earnings announcement should occur sometime in November. That makes the November announcement management's last major opportunity to reveal any sizable updates to its project pipeline.
There is a chance that we will receive a positive update on the company's project with RoPower, which in February was approved for investment by the shareholders of Romanian nuclear operator Nuclearelectrica.
"The Final Investment Decision for the SMR project in Doicești marks the transition from the analysis phase to the implementation phase, consolidating Romania's position at the forefront of the new European nuclear industry," commented Romania's Minister of Energy. "We are replacing 600 MW from a former thermal power plant with 462 MW of clean, stable, and predictable energy."
I wouldn't count on any major update for this project this year. However, given that the next planning stage is expected to last around 15 months, that puts a future announcement sometime in mid-2027.
Image source: Getty Images.
This year, I have my eyes more set on NuScale's project with the Tennessee Valley Authority (TVA) in the eastern U.S. This is a much bigger deal, anyway, in terms of sheer size.
During the latest conference call, NuScale's CFO noted encouragingly, "We're hopeful that TVA can come across the line at some point later this year." That's because a binding power purchasing agreement (PPA) -- an agreement that commits TVA to buy power from the project at a certain rate, often for decades to come -- is expected to be closed this year, clearing way for construction to begin.
Management lamented "a quieter quarter from an announcement perspective" on the latest earnings call. I expect management to do everything possible to close a PPA deal with TVA and ready a sizable announcement for the November earnings call.
Shares of NuScale Power (SMR +3.01%) are back on the rise. Following a 50% decline that began with the new year, the nuclear reactor stock has spiked nearly 30% in value over the past two weeks.
NuScale's story won't be written over a matter of weeks, or even months. The company is targeting what some experts believe will be a $10 trillion global opportunity due to rising electricity demand from artificial intelligence (AI) technologies and a resurgence of interest in nuclear energy.
Even after the recent run, NuScale stock remains 75% cheaper than its all-time highs set last summer. Is this growth stock -- with its small modular reactors -- the smartest investment you can make today? The answer may either be yes or no, depending on the answer to the question below.
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When will SMR technology take off? There's no question that NuScale has a tremendous growth opportunity. "Capital is pouring into data center development, but there are real constraints on growth," said a recent report from McKinsey & Co. What's the biggest growth constraint? "Incumbents can't meet demand for power," the report says.
Data centers are energy intensive because of what they're asked to do. The rapid and continuous explosion of AI technologies requires these data centers to run intensive, computationally complex processes nearly without pause. That requires huge amounts of energy not only to power the computing, but also to cool down the GPUs to maintain efficiency and longevity.
The current electric grid isn't designed for the amounts of demand growth year after year. From 2000 to 2020, for instance, electricity demand in the U.S. barely budged. So, new sources of energy will be needed to fuel the ongoing AI revolution and global data center build-out. Nuclear power is an ideal antidote, but large conventional nuclear plants can take a decade or more to get on line.
NuScale's small modular reactors (SMRs), at least on paper, can be deployed much faster with lower initial costs, without sacrificing the ability to scale up generation capacity down the line. In short, NuScale's SMR technology could be a key enabler of the AI economy. There's just one problem for investors: timing.
Image source: Getty Images
NuScale has never successfully commercialized an SMR system. As such, its revenue remains minimal. Last year, the company reported just $31.5 million in sales, with a net loss of roughly $355 million -- more than $100 million greater than the year before. To cover the financial gap, management was forced to sell 39.3 million shares during the fourth quarter of 2025, generating $750 million in capital.
Over the past 12 months, total shares outstanding have more than doubled. That follows years of additional shareholder dilution -- a trend that investors should expect to continue.
It will likely be years until the company gets its first SMR on line. Even if successful, the accumulated shareholder dilution may be too heavy to outpace with true growth. So while NuScale Power is a promising long-term choice, investors must decide what they think the company's execution timeline will be. That will dictate how smart an investment NuScale Power is today.
Key Takeaways SMR's NuScale Power Module is a 77-MW small reactor built on proven pressurized water tech.Factory-built, shippable components aim to simplify construction and cut delays and project risk.NRC approvals came in 2020, 2023 and 2025; TVA plans and Romania's RoPower project progress. NuScale Power Corporation’s (SMR - Free Report) main technology is the NuScale Power Module, a small nuclear reactor (“SMR”) designed to make nuclear power projects easier and more practical to build. The reactor is based on proven pressurized water reactor technology already used in the nuclear industry, which reduces the need for entirely new or untested systems. One of its biggest advantages is that it became the first small modular reactor design to receive approval from the U.S. Nuclear Regulatory Commission, including Standard Design Approval in 2020, Design Certification in 2023 and a second Standard Design Approval in 2025. This regulatory approval provides an important level of validation and could help support future commercial deployment.
The NuScale Power Module is designed to generate 77 megawatts of electricity and operate more than 95% of the time, making it suitable for delivering reliable, around-the-clock power. The reactor and steam generator are housed inside a compact cylindrical vessel measuring about 76 feet in height and 15 feet in width. It uses commercially available low-enriched uranium fuel, with enrichment levels below 5%, and benefits from an established fuel supply chain. The reactor only needs refueling about once every 21 months. Another key advantage is its modular design. Major components can be built in factories and shipped to project sites in sections, while multiple suppliers are available for critical equipment. This approach is intended to simplify construction, reduce delays and lower some of the risks that have historically affected large nuclear power projects.
The biggest advantage of the NuScale Power Module is its flexibility and scalability. A power plant can begin with a small number of modules and add more over time as electricity demand increases, allowing operators to expand capacity gradually instead of building a large plant all at once. The reactor is also designed with passive safety features, meaning it can automatically shut down and cool itself without operator intervention, external power or additional water.
NuScale’s design also has a site-boundary emergency planning zone, an unlimited coping period approved by the NRC, and capabilities such as black-start, island-mode and off-grid operation. In simple terms, NuScale is marketing the technology as a smaller, expandable nuclear power solution for customers that need dependable clean energy, particularly in locations where building a large traditional nuclear plant may not be practical due to land, grid or industrial requirements.
Recent commercialization efforts also provide additional support to the technology. ENTRA1 Energy and the Tennessee Valley Authority (“TVA”) are advancing plans for up to 6 gigawatts of new nuclear generation using NuScale's technology across TVA’s seven-state service area, while the RoPower project in Romania continues to move forward through development. These projects highlight growing interest in deploying NuScale’s technology at scale.
While NuScale represents one approach to SMR commercialization through light-water reactor technology and larger modular deployment, other companies are pursuing different reactor designs aimed at serving more specialized power needs. OKLO and NANO Nuclear Energy are two such names, with technologies focused on compact reactors, alternative fuels and flexible deployment models.
Other Emerging Nuclear Technologies to Watch
Oklo Inc.’s (OKLO - Free Report) nuclear technology is built around liquid-metal-cooled, metal-fueled fast reactors, a design OKLO says has more than 400 reactor-years of global operating history. OKLO focuses on inherent safety, meaning the reactor can stabilize itself using natural forces rather than depending only on active systems. The company also highlights fuel recycling, because fast reactors can use used nuclear fuel as input. In simple terms, OKLO aims to provide clean power, advanced fuel and radioisotopes through compact fast-reactor systems.
Meanwhile, NANO Nuclear Energy’s (NNE - Free Report) nuclear technology is centered on portable and stationary microreactors that can deliver clean, reliable energy in smaller packages than traditional reactors. NANO Nuclear is developing the patented KRONOS Micro Modular Reactor Energy System, a stationary high-temperature gas-cooled reactor, along with ZEUS, a solid-core battery reactor, and LOKI MMR for portable and space-capable uses. In simple terms, NANO Nuclear wants its microreactors to be modular, easier to deploy and useful for power, heat, microgrids and remote locations.
The Zacks Rundown on NuScale Power
Shares of SMR have lost 47.4% over the past six months.
Image Source: Zacks Investment Research
NuScale Power currently has an average brokerage recommendation of 2.56 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 18 brokerage firms.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for SMR’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Every company in an emerging industry wants to be the first at something: to get through the regulatory process, into production, or into a customer's hands. For NuScale Power (SMR +3.01%), however, being first has had an unfortunate disadvantage: finding a customer who's willing to be first, too.
It's not hard to imagine why. NuScale is developing a small modular reactor (SMR) that shrinks the benefits of a nuclear power plant -- clean, reliable, always-on power -- but without necessarily shrinking the costs. Indeed, the cost of NuScale's first major project, the Carbon Free Power Plant, had risen to about $9 billion before it was canceled in 2023. Large-scale nuclear power plants can have a similar cost yet produce more electricity.
Today, NuScale still lacks a firm sale of its SMR technology. And yet its outlook is changing. Data center growth has made reliable power one of the biggest bottlenecks in the build-out of artificial intelligence (AI). A company like NuScale could easily become the linchpin for keeping that boom going.
Image source: Getty Images.
With NuScale trading 20% lower on the year, should you buy before the company inks its first deal or wait this one out?
Closer than most, but still waiting In simplest terms, NuScale's technology has three advantages: The reactors are scalable (customers can use up to 12 modules based on their needs); they're factory-built, reducing deployment time; and they can supply clean, round-the-clock power.
In theory, then, NuScale could help usher in a new era of clean energy, in which nuclear reactors are smaller and more widely used, powering everything from data centers to hospitals with no greenhouse gas emissions.
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To get there, NuScale needs to build its first SMR power plant on time and (more importantly) on a budget. To that effect, it has two critical projects in the works, possibly three. The company recently got the green light to move forward with a planned 462-megawatt electric (MWe) SMR power plant in Romania. It is also partnering with the Tennessee Valley Authority (TVA) through its ENTRA1 Energy partner to deploy up to 6 gigawatts of power across TVA's seven-state service area.
NuScale recently mentioned in its first-quarter earnings that South Korea might be interested in investing in certain U.S. industries, including nuclear power. To be sure, this isn't the same as investing directly in NuScale, nor does it mean it will ink a firm sale of SMR technology. But NuScale and South Korea have long been in talks over developing an SMR power plant. Indeed, since 2019, NuScale and South Korea's Doosan Enerbility have been business partners -- so this could be a sign that the deal is inching closer.
Without a firm sale, however, NuScale's revenue pales in comparison to its costs. The company reported a first-quarter net loss of about $44 million, with revenue of about $565,000. Annual revenue is expected to grow over the next two years, though not nearly enough to make this company profitable.
Data by YCharts
Most investors will probably want to wait until NuScale deploys its first SMR before taking a position. Only very aggressive investors who can stomach the near-term volatility before it does should consider this high-risk, high-reward play on the future of nuclear power.
Rolls-Royce Holdings is initiated at Buy, targeting $20–21 per ADR within 12–16 months, anchored by a robust turnaround and SMR momentum. SMR contracts in the UK and Czech Republic, with regulatory lead and government backing, provide asymmetric upside not yet priced in. Core businesses—civil aerospace, defense, and power systems—deliver strong growth, margin expansion, and free cash flow, underpinning current valuation.
Engagement brings AI-enabled reactor modeling and simulation capabilities to Eagle’s next-generation SMR development efforts June 09, 2026 08:30 ET | Source: Eagle Nuclear Energy Corp.
RENO, Nev., June 09, 2026 (GLOBE NEWSWIRE) -- Eagle Nuclear Energy Corp. (“Eagle” or the “Company”) (NASDAQ: NUCL), a next-generation nuclear energy company that owns the largest conventional, measured and indicated uranium deposit in the United States, today announced that it has engaged Tensor Medium Corporation (“Tensor Medium”), an advanced algorithm and artificial intelligence company, to support reactor simulation and optimization efforts connected to Eagle’s small modular reactor (“SMR”) program. The engagement includes multiple workstreams that support Eagle’s broader strategy to advance an integrated nuclear energy platform combining domestic uranium resources with advanced SMR technology.
Under the engagement, Tensor Medium will support reactor modeling and simulation efforts for Eagle’s SMR program, including reactor engineering support, materials optimization, quantum development, and support for future licensing readiness in connection with Eagle’s broader SMR development initiatives.
“Engaging the right specialized technical partners is an important step in the evolution of our SMR program and Eagle’s broader nuclear energy platform strategy,” said Eagle CEO Mark Mukhija. “Tensor Medium brings expertise in AI-enabled simulation technologies and high-performance computing capabilities that will support reactor design optimization and future development efforts related to our reactor initiative. We are pleased to begin working alongside their team as we advance our broader SMR development efforts.”
Founded by former Los Alamos National Laboratory theoretical physicist Dr. Boian Alexandrov, Tensor Medium specializes in AI tensor networks mathematics, physics-based simulations, and advanced engineering technologies for complex engineering and national security applications. The company’s technology has been applied across nuclear science, biosecurity, advanced materials, and defense systems.
“Tensor Medium’s advanced simulation and optimization capabilities are well-suited to next-generation reactor development programs such as Eagle’s SMR initiative,” said Alexandrov. “Our team has spent years developing computational methods designed to address complex engineering and physics problems at scale, and we look forward to supporting Eagle’s nuclear development strategy.”
The engagement with Tensor Medium supports Eagle’s ongoing efforts to develop an integrated nuclear energy platform combining domestic uranium resources with advanced SMR technology. In parallel, the Company continues to advance its flagship Aurora Uranium Project toward a Pre-Feasibility Study (“PFS”), currently targeted for completion in the second half of 2027.
About Eagle Nuclear Energy Corp.
Eagle Nuclear Energy Corp. is a next-generation nuclear energy company that combines domestic uranium exploration with access to certain small modular reactor (SMR) technology. The Company owns the largest conventional, measured, and indicated uranium deposit in the United States, located in southeastern Oregon. This includes the Aurora deposit, with 32.75Mlbs Indicated and 4.98Mlbs Inferred (SK-1300 TRS) of near-surface uranium resource, and the adjacent Cordex deposit, which the Company believes offers potential to expand the project’s overall resource inventory. BBA USA Inc. previously completed Aurora’s S-K 1300 Mineral Resource Estimate and authored the related Technical Report Summary in August 2025, providing technical continuity as the Project advances. By integrating advanced SMR technology with a sizeable uranium asset, Eagle is building an integrated nuclear platform positioned to support domestic nuclear energy development.
For more information about Eagle Nuclear Energy Corp., visit www.eaglenuclear.com.
About Tensor Medium
Tensor Medium Corporation is an advanced algorithm and artificial intelligence company specializing in tensor factorization methods, high-performance computing, and physics-based simulations at the exascale level. The company uses advanced mathematical frameworks, including tensor networks, non-negative matrix factorization, and quantum-inspired algorithms, to address computationally demanding problems in nuclear engineering, materials science, defense systems, and national security applications.
Certain statements included in this press release are not historical facts but are forward-looking statements. All statements other than statements of historical facts contained in this press release are forward-looking statements. Any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are also forward-looking statements. In some cases, you can identify forward-looking statements by words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “strategy,” “future,” “opportunity,” “may,” “target,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” “preliminary,” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements include, without limitation, Eagle’s, or its management team’s expectations concerning the modeling and simulation services to be provided by Tensor Medium; the potential application of AI-enabled simulation, high-performance computing, and related computational methods to Eagle’s SMR development efforts; the technical feasibility, validation, regulatory pathway, and future development of Eagle’s SMR program; Eagle’s ability to work with third-party technology providers and technical partners; the outlook for Eagle’s business; the ability to execute Eagle’s strategies and reach permitting, licensing, technical, development, and operational milestones timely or at all; projected and estimated financial performance; anticipated industry trends; the future price of minerals; future capital expenditures; success of exploration activities; mining or processing issues; government regulation of mining operations, nuclear energy development, advanced reactor technologies, and related licensing activities; and environmental risks; as well as any information concerning possible or assumed future results of operations of Eagle. The forward-looking statements are based on the current expectations of the management teams of Eagle, and are inherently subject to uncertainties and changes in circumstance and their potential effects. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, (i) market risks; (ii) the effect of the Company’s previously completed business combination with Spring Valley Acquisition Corp. II (the “Business Combination”) on Eagle’s business relationships, performance, and business generally; (iii) risks that the Business Combination disrupts current plans of Eagle and potential difficulties in its employee retention as a result of the Business Combination; (iv) the outcome of any legal proceedings that may be instituted against Eagle related to the Business Combination; (v) failure to realize the anticipated benefits of the Business Combination; (vi) the inability to maintain the listing of Eagle’s securities on Nasdaq Capital Market or a comparable exchange; (vii) the risk that the price of Eagle’s securities may be volatile due to a variety of factors, including changes in laws, regulations, technologies, natural disasters or health epidemics/pandemics, national security tensions, and macro-economic and social environments affecting its business; (viii) fluctuations in spot and forward markets for uranium and certain other commodities (such as natural gas, fuel oil and electricity); (ix) restrictions on mining in the jurisdictions in which Eagle operates; (x) laws and regulations governing Eagle’s operation, exploration and development activities, and changes in such laws and regulations; (xi) Eagle’s ability to obtain or renew the licenses and permits necessary for the operation and expansion of its existing operations and for the development, construction and commencement of new operations; (xii) Eagle’s ability to validate, develop, license, finance, construct, commercialize, or deploy SMR technology on anticipated timelines or at all; (xiii) risks relating to nuclear energy regulation, licensing, permitting, safety review, public acceptance, and government policy; (xiv) risks that AI-enabled modeling, simulation, optimization, or other technical workstreams do not produce anticipated results or do not translate into commercially viable or licensable reactor technology; (xv) risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, potential unintended releases of contaminants, industrial accidents, unusual or unexpected geological or structural formations, pressures, cave-ins and flooding); (xvi) inherent risks associated with tailings facilities and heap leach operations, including failure or leakages; the speculative nature of mineral exploration and development; the inability to determine, with certainty, production and cost estimates; inadequate or unreliable infrastructure (such as roads, bridges, power sources and water supplies); (xvii) environmental regulations and legislation; (xviii) the effects of climate change, extreme weather events, water scarcity, and seismic events, and the effectiveness of strategies to deal with these issues; (xix) risks relating to Eagle’s exploration operations; (xx) fluctuations in currency markets; (xxi) the volatility of the metals markets, and its potential to impact Eagle’s ability to meet its financial obligations; (xxii) disputes as to the validity of mining or exploration titles or claims or rights, which constitute most of Eagle’s property holdings; (xxiii) Eagle’s ability to complete and successfully integrate acquisitions; (xxiv) increased competition in the mining industry for properties and equipment; (xxv) limited supply of materials and supply chain disruptions; (xxvi) relations with and claims by indigenous populations; (xxvii) relations with and claims by local communities and non-governmental organizations; and (xxviii) the risk that other capital needed by Eagle may not be raised on favorable terms, or at all. The foregoing list is not exhaustive, and there may be additional risks that Eagle presently does not know or that Eagle currently believes are immaterial. You should carefully consider the foregoing factors, any other factors discussed in this press release and the other risks and uncertainties described in the registration statement on Form S-1 initially filed by Eagle on March 19, 2026, and any amendments or supplements thereto, and those discussed and identified in other filings made with the SEC by Eagle from time to time, which may be found on the SEC’s website at www.sec.gov. Eagle cautions you against placing undue reliance on forward-looking statements, which reflect current beliefs and are based on information currently available as of the date a forward-looking statement is made. Forward-looking statements set forth in this press release speak only as of the date of this press release. Eagle undertakes no obligation to revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs. In the event that any forward-looking statement is updated, no inference should be made that Eagle will make additional updates with respect to that statement, related matters, or any other forward-looking statements.
NuScale’s 12th training center delivers hands-on nuclear simulation technology to prepare the next generation of clean-energy professionals
CORVALLIS, Ore.--(BUSINESS WIRE)--NuScale Power Corporation (NYSE: SMR), the industry-leading provider of proprietary and innovative advanced small modular reactor (SMR) nuclear technology, today announced the opening of its 12th Energy Exploration (E2) Center™ at the University of Virginia’s College at Wise (UVA Wise), strengthening southwest Virginia’s role in advancing nuclear energy education and workforce development. The E2 Center, funded by a grant from the Virginia Clean Energy Innovation Bank powered by the Virginia Department of Energy (Virginia Energy), will deliver an immersive training and simulation environment designed to prepare the next generation of nuclear energy professionals.
“Today marks an important step forward in the expansion of clean-energy workforce development as NuScale opens our second E2 Center in the state of Virginia and 12th globally,” said John Hopkins, NuScale President and Chief Executive Officer. “UVA Wise is now equipped with industry-leading simulation technologies that mirror real-world operations of advanced SMR plants containing NuScale Power Modules™. This center will provide students and trainees with practical experience and the expertise needed to lead in the energy sector and advance Virginia’s – and the country’s – clean-energy future.”
NuScale is a leader in the SMR industry as the only technology to have received design approval from the U.S. Nuclear Regulatory Commission (NRC), and with modules already in production. NuScale's E2 Centers provide an interactive learning environment where students can gain firsthand experience in operating a modern nuclear power plant. Using state-of-the-art computer modeling and a four-module control room simulator based on NuScale’s advanced SMR design, the E2 Center allows students and other users to assume the roles of nuclear plant operators, responding to simulated scenarios, monitoring system performance and gaining real-time insight into modular nuclear technology.
In coordination with university leadership and Virginia Energy, the E2 Center is intended to support regional workforce transition, STEM education pathways, and potential future energy-technology deployments within the state.
Virginia Governor Abigail Spanberger emphasized the role of advanced nuclear energy in meeting the Commonwealth's growing energy needs while creating new opportunities for workforce development and economic growth.
"Building a more affordable and reliable energy future means increasing energy generation in Virginia, and advanced nuclear is a part of how we get there," said Virginia Governor Abigail Spanberger. "Southwest Virginia has powered our Commonwealth for generations, and the installation of one of only a handful of facilities like this anywhere in the world is a recognition of what the region has always had to offer. That’s good for UVA Wise students, good for the communities across Southwest Virginia building their economic futures, and good for Virginia as we address increasing energy demand."
State officials also highlighted the E2 Center's role in supporting Virginia's workforce and economic development priorities.
"Investments like this are exactly what the Virginia Clean Energy Innovation Bank was built for: putting state resources behind the technologies and training that give Virginia's leaders, communities, and workforce the knowledge and experience they need to make sound energy decisions for years to come," said Virginia Energy Acting Director Mike Skiffington.
"When businesses look to locate and grow, they need reliable energy, a technically skilled workforce, and the institutional partners to sustain it," said Virginia Secretary of Commerce and Trade Carrie Chenery. "With this investment, NuScale has signaled that Virginia has all three and that Southwest Virginia, with its deep energy heritage and growing institutional strength, is where that investment belongs."
UVA Wise leadership discussed the E2 Center's impact on student learning and workforce preparation.
“We are excited for this new opportunity to help the region’s workforce gain hands-on experience with one of the world’s leading technologies,” said Donna P. Henry, Chancellor of UVA Wise. “The NuScale simulator will enhance our outreach programs, expand STEM outreach, and help increase understanding about energy possibilities while positioning Southwest Virginia at the forefront of clean energy workforce development.”
The UVA Wise center adds to NuScale’s expanding E2 Center network. Including the new center at UVA Wise, NuScale E2 Centers are now installed at 12 educational institutions around the world, including George Mason University, Idaho State University, Ohio State University, Oregon State University, Rensselaer Polytechnic Institute, Texas A&M, University of Nevada-Las Vegas, South Carolina State University, University Politehnica of Bucharest, Ghana Atomic Commission, and Seoul National University. Learn more about NuScale E2 Centers.
About NuScale Power
Founded in 2007, NuScale Power Corporation (NYSE: SMR) is the industry-leading provider of proprietary and innovative advanced small modular reactor (SMR) nuclear technology, with a mission to help power the global energy transition by delivering safe, scalable, and reliable carbon-free energy. The Company’s groundbreaking SMR technology is powered by the NuScale Power Module™, a small, safe, pressurized water reactor that can each generate 77 megawatts of electricity (MWe) or 250 megawatts thermal (gross), and can be scaled to meet customer needs through an array of flexible configurations up to 924 MWe (12 modules) of output.
As the first and only SMR to have its designs certified by the U.S. Nuclear Regulatory Commission, NuScale is well-positioned to serve diverse customers across the world by supplying nuclear energy for electrical generation, data centers, district heating, desalination, commercial-scale hydrogen production, and other process heat applications.
To learn more, visit NuScale Power’s website or follow us on LinkedIn, Facebook, Instagram, X, and YouTube.
Forward Looking Statements
This release contains forward-looking statements (including without limitation statements containing words such as "will," "believes," "expects," “anticipates,” "plans" or other similar expressions). These forward-looking statements may include statements relating to our strategic and operational plans, expectations (including regarding our market positioning, our progress toward deploying our technology, the market for nuclear energy and providing energy technology for communities around the world), future growth, and the outlook of our business.
Our actual results may differ materially from what may be included in forward-looking statements as a result of a number of factors, including, among other things, the following: our ability to enter into binding contracts with customers to deliver NPMs; competition from other nuclear reactor technologies; delays in the development and manufacturing of NPMs and related technology; the possibility that we may continue to incur losses in the future and may not be able to achieve or maintain profitability; the cost of electricity generated from nuclear sources or our NPMs may not be cost competitive; the market for SMRs is not yet established and may not achieve growth as expected; our dependence on our relationships with ENTRA1, Fluor and other strategic partners; risks related to the Partnership Milestones Agreement that we entered into with ENTRA1; our ability to manage our growth effectively; our need for additional funding in the future; our partners’ and potential customers’ ability to secure funding; manufacturing and construction issues, including that our supply base in constrained; the politically sensitive environment we operating in and the public perception of nuclear energy; our dependence on senior management and other highly skilled personnel; our ability to obtain design approvals internationally; our customers’ ability to obtain required regulatory approvals on a timely basis or at all; compliance with environmental laws and evolving government laws and regulations; the impact of changing trade policies and new or increased tariffs; risks related to cybersecurity; changes in tax laws; our ability to protect our intellectual property; our limited number of authorized shares available for issuance; the price of our Class A common stock may be volatile; additional sales of our common stock or exercise of our options could result in dilution to our stockholders; we have and may in the future be subject to short selling strategies; NuScale Power, LLC being treated as a corporation for U.S. federal income tax or state tax purposes; and requirements under the Tax Receivable Agreement. Caution must be exercised in relying on these and other forward-looking statements. Due to known and unknown risks, our results may differ materially from its expectations and projections.
Additional information concerning these and other factors can be found in the Company's public periodic filings with the Securities and Exchange Commission, including the general economic conditions and other risks, uncertainties and factors set forth in the sections entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 and in subsequent filings we make with the SEC. The referenced SEC filings are available either publicly or upon request from NuScale's Investor Relations Department at [email protected]. The Company disclaims any intent or obligation other than as required by law to update or revise any forward-looking statements.
X-Energy is a speculative buy at $21, offering a unique SMR solution with both electricity and high-temperature steam applications. XE's Xe-100 reactor and TRISO-X fuel position it for industrial, chemical, hydrogen, and data center markets, broadening its addressable market versus peers. Q1 2026 saw 109% revenue growth to $43.4M, but operating costs rose 133%, with substantial cash burn offset by a strong post-IPO liquidity position.
Key Takeaways SMR is down 23% in a month and 35% YTD, as investors weigh promise vs. minimal revenues.NuScale says its SMR has U.S. NRC design approval, with plant setups scalable up to 12 modules.SMR posted ~$565K Q1 revenues and a ~$44M net loss, as investors watch cash burn and dilution risk. NuScale Power Corporation (SMR - Free Report) has gone from nuclear-energy favorite to a debated stock-market idea. The stock is down 23% over the past month and 34.5% year to date, raising a key question: Is this a “buy the dip” opportunity? Artificial intelligence, data centers and electrification are pushing power demand higher, and NuScale’s small modular reactor (“SMR”) technology is designed to provide clean, round-the-clock electricity in a scalable format. NuScale says its Power Module is the first and only SMR to receive U.S. Nuclear Regulatory Commission design approval, with plant configurations scalable up to 12 modules.
Image Source: Zacks Investment Research
Why NuScale’s Dip Has Investors Interested
The recent weakness is easy to understand. NuScale has promising technology, but it lacks a firm commercial sale of its SMR system. First-quarter revenues were only about $565,000, while the company posted a net loss of roughly $44 million. Investors are paying today for projects that may take years to reach operation.
The canceled Carbon Free Power Project also reminds investors that nuclear plans can face cost, financing and customer-commitment hurdles. This is why NuScale trades more like a speculative growth stock than a traditional energy company. The same issue affects nuclear peers Oklo Inc. (OKLO - Free Report) and NANO Nuclear Energy (NNE - Free Report) . OKLO has made visible progress with customers and fuel plans, while NANO Nuclear is building a microreactor and fuel-related platform, but OKLO, NNE and SMR are still valued mainly on future milestones.
SMR’s Growth Case Still Has Appeal
NuScale’s strongest argument is that it appears closer than many rivals to a deployable SMR solution. The company highlights U.S. NRC leadership, commercially available low-enriched uranium fuel, factory-built modules, passive safety features and the ability to support on-grid and off-grid power needs. Its first-quarter presentation also highlighted progress in Romania, where shareholders of SN Nuclearelectrica approved the next phase of the RoPower project in Doicesti. The company also pointed to ENTRA1’s efforts to deploy NuScale’s SMR technology through planned projects with the Tennessee Valley Authority.
Image Source: NuScale Power Corporation
While these developments do not guarantee sales, they keep the commercialization story alive. The AI power angle is also important. Data centers need stable baseload electricity, and nuclear power is getting attention because wind and solar cannot always provide continuous output. This backdrop has helped NuScale, OKLO and NANO Nuclear stay on investor radar. For investors comparing the three, NuScale’s regulatory head start may be its clearest differentiator.
NuScale’s Price Performance, Estimates and Valuation
The pullback has made SMR look less expensive than it did during the nuclear enthusiasm wave, but “less expensive” does not automatically mean “cheap.” The significant year-to-date decline reflects worries around timing, dilution and the lack of meaningful revenues. The Zacks Consensus Estimate for 2026 revenues indicates growth of 37%, while the 2027 estimate implies growth of 355%, suggesting that analysts expect the business to move in the right direction.
Still, those growth rates come from a very small base, and profitability is not yet visible. That makes valuation difficult. A price-to-earnings view does not work for a company losing money, while price-to-sales can look stretched because current sales remain minimal. NuScale may deserve a premium if it converts partnerships into binding contracts, but OKLO and NANO Nuclear are competing for the same nuclear-growth capital.
Image Source: Zacks Investment Research
What Could Change the SMR Story?
For NuScale to become a clearer buy-the-dip case, investors need proof of execution, such as a firm order, stronger project financing, additional international approvals or a major data-center-linked agreement. NuScale’s expanding Energy Exploration Center network supports workforce development, but investors are likely to focus more on contract wins and cash burn.
The biggest risk is that commercialization takes longer than expected, requiring more capital and causing further dilution. OKLO and NNE also face regulatory, funding and execution hurdles. However, NuScale’s approved light-water SMR design gives it a different risk profile than OKLO and NANO Nuclear, which may appeal to investors seeking advanced nuclear exposure tied to a more established reactor foundation.
Conclusion
NuScale’s sell-off makes the stock more interesting, but not yet a straightforward buy-the-dip opportunity for most investors. The long-term case is appealing because NuScale is targeting a real energy problem, has a differentiated regulatory position and could benefit from AI-driven demand for reliable clean power. However, limited revenues, continuing losses, an uncertain project timeline and possible need for more capital argue for patience. Aggressive investors may view the decline as an entry point into a speculative nuclear leader, but conservative investors may want to wait for a firm commercial sale or clearer earnings visibility. Based on the current balance of opportunity and risk, NuScale stock is currently a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF, FRA:RR1), the LSE-listed critical minerals company, rose 8% to 28p after unveiling a $916 million net present value economic assessment for its Uberaba rare earths project in Brazil and signing a joint development agreement with Mosaic, the New York-listed fertiliser giant.
The Uberaba project, located in the Minas Gerais state of Brazil, would extract rare earth elements from phosphogypsum, a waste product generated during phosphoric acid production at Mosaic's existing operations on site, using proprietary processing technology developed by Rainbow.
The economic assessment estimates a post-tax internal rate of return of 45%, average annual earnings before interest, tax, depreciation and amortisation of $217 million over a 30-year mine life, and a capital payback period of just 1.7 years, based on a capital expenditure of $279 million.
Rainbow and Mosaic have signed a joint project development agreement to advance a pre-feasibility study, with the intention of establishing a joint venture in which Mosaic would hold 51% and Rainbow 49%, subject to final negotiation of terms.
The partners are targeting initial production by 2030, subject to further studies, regulatory approvals and financing.
The project mirrors Rainbow's flagship Phalaborwa project in South Africa, which uses the same phosphogypsum processing approach, and the company said lessons learned at Phalaborwa could allow Uberaba to be developed on a faster timeline.
George Bennett, chief executive of Rainbow, said Brazil was emerging as a strategically important rare earths hub for the Americas, with strong interest in funding from the United States and allied nations seeking to build supply chain independence from China.
Investors have been repositioning sharply across European airline stocks since the outbreak of Middle East hostilities, with Ryanair Holdings PLC (LSE:RYA) emerging as the clear defensive favourite while short positions have built against carriers more vulnerable to elevated fuel prices.
This is Citi's analysis of positioning data from institutional investors, with the analysis showing that sector positioning has turned more negative over both the past week and month.
Investors have increased short exposure in Wizz Air Holdings PLC (AIM:WIZZ), easyJet PLC (LSE:EZJ) and Air France-KLM, which Citi characterises as the most operationally and financially leveraged carriers and therefore most exposed to sustained fuel price pressure.
British Airways owner International Consolidated Airlines Group SA (LSE:IAG) has also seen a shift, with long positioning that had been particularly heavy now moving to a more balanced level as investors take profits or hedge against further volatility.
Ryanair has bucked the trend, with long positioning increasing over the past week as investors gravitate toward what Citi describes as the carrier best equipped to weather near-term geopolitical turmoil. This view, the bank said, is "widely and rightly held".
The Irish carrier's low-cost model, strong hedging position and predominantly intra-European network make it less exposed than peers to Middle Eastern route disruptions and transatlantic demand softness.
Lufthansa is a notable outlier in the data. While positioning has turned more negative over the past month, that shift predates the onset of the conflict, despite the German carrier having particularly high exposure to crack spreads, the margin between crude oil and refined jet fuel prices that has widened sharply since hostilities began.
Citi said near-term share prices across the sector would remain heavily dictated by fuel price movements.
PBR's low breakeven of $50/barrel, expanding export volumes, & growing productions position it for strong FQ2'26/H2'26 cash flows, aided by the elevated Brent oil spot prices. Management is prioritizing growth capex and deleveraging, but their rich ordinary/extraordinary dividends remain likely, attributed to the ongoing oil demand/supply imbalance through 2027. PBR may be a better Buy nearer the $17–$14 ranges, with the sequentially flat dividend payouts and the ongoing ceasefire discussion likely putting future downward pressure on the oil/stock prices.
Key Takeaways Petrobras lifted refined output to 1,816 Mbpd in Q1 2026 as utilization reached 95%.PBR's March utilization hit 97.4%, the highest monthly level since December 2014.Petrobras cut LPG imports to 26 Mbpd and signed a Vale deal for S-10 diesel with 15% biodiesel. The refining business of Petroleo Brasileiro S.A., or Petrobras (PBR - Free Report) ), had a strong first quarter, and the main reason was simple: its refineries ran harder and produced more fuel. In the first quarter of 2026, the company produced 1,816 thousand barrels per day (Mbpd) of refined products, up 6.7% from the previous quarter. Its refinery utilization rate reached 95%, and in March it climbed to 97.4%, the highest monthly level since December 2014. This shows that Petrobras is getting more out of its existing refining assets at a time when fuel demand and supply security remain important.
The stronger performance came from making more of the products that matter most to customers and margins. Diesel, gasoline and jet fuel made up 68% of total oil products output in the quarter. The largest integrated energy firm in Brazil also reached a monthly record of 512 Mbpd of S-10 diesel production in March. Since S-10 diesel is a cleaner, high-demand fuel, producing more of it can help Petrobras improve its product mix and support downstream profitability. The higher use of pre-salt oil in refining also points to better flexibility in turning domestic crude into higher-value products.
This is important beyond just quarterly numbers. Higher refinery output helped Petrobras reduce its need for imports, including LPG imports, which fell to 26 Mbpd. The company also signed a deal with mining behemoth Vale to supply S-10 diesel containing 15% biodiesel, showing how its refining business can support both customer relationships and lower-carbon fuel offerings. If Petrobras can keep utilization high while controlling costs, the downstream business could become a more reliable earnings driver.
Petrobras’ stronger refining performance is not happening in isolation. A look at U.S. energy giants Chevron (CVX - Free Report) and ExxonMobil (XOM - Free Report) shows that downstream strength remains an important earnings lever for integrated energy majors, especially when higher utilization, better margins and product optimization come together.
Downstream Momentum Extends Beyond Petrobras
Chevron’s downstream had a mixed first quarter, but its refining assets showed clear operating strength. U.S. downstream earnings rose from a year earlier as margins improved, and U.S. refinery crude inputs increased 4% to 1,054 Mbpd, helped by Pasadena’s Light Tight Oil project. Chevron also achieved record U.S. crude throughput in March. For Chevron, international downstream weakness came from timing effects and higher costs.
ExxonMobil’s downstream performance was stronger on an underlying basis. Energy Products earnings, excluding identified items and timing effects, reached $2.8 billion, up $1.9 billion year over year, supported by better refining margins, trading and optimization gains, and cost savings. ExxonMobil also benefited from high U.S. Gulf Coast refinery utilization, although maintenance and Middle East disruptions reduced volumes. For ExxonMobil, downstream remained a key earnings support.
The Zacks Rundown on PBR
Shares of PBR have gained some 68% over the past year, outperforming the industry’s growth.
Image Source: Zacks Investment Research
Petrobras currently has an average brokerage recommendation (ABR) of 1.61 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for PBR’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Petrobras plans to invest nearly $9.7B by 2030 in offshore decommissioning projects in Brazil.SAPMF will support plug and abandonment, subsea removal and offshore logistics optimization.PBR aims to retire 18 platforms, close 500 wells and decommission 1,800 km of risers. Petrobras (PBR - Free Report) , a Brazil-based integrated energy firm and Saipem (SAPMF - Free Report) , an Italian engineering and offshore services company, have inked a memorandum of understanding (MoU) aimed at advancing integrated offshore decommissioning solutions in Brazil. The agreement marks a significant development for the South American nation’s offshore energy sector as operators increasingly focus on safely retiring aging oil and natural gas infrastructure.
The partnership arrives at a crucial moment for Petrobras, which plans to invest nearly $9.7 billion by 2030 in decommissioning projects across Brazil. The company’s large-scale program includes the removal of 18 offshore production platforms, the permanent closure of nearly 500 wells and the decommissioning of approximately 1,800 kilometers of flexible risers. The initiative reflects Petrobras’ broader commitment to operational safety, environmental stewardship and infrastructure modernization.
The MoU creates a framework for technical and operational collaboration between the two companies, particularly in plug and abandonment activities, subsea decommissioning and offshore logistics optimization. The cooperation is expected to improve execution efficiency while enhancing sustainability and innovation in offshore end-of-life asset management.
Brazil’s Offshore Decommissioning Market Continues to ExpandBrazil has emerged as one of the world’s leading offshore oil-producing regions over the past two decades, driven largely by deepwater and pre-salt discoveries. However, as mature offshore assets age, the country is entering a new phase focused on decommissioning and infrastructure retirement.
Petrobras’ multi-billion-dollar investment strategy highlights the growing scale of this market. Offshore decommissioning has become an increasingly important segment within the global energy industry, requiring advanced engineering capabilities, specialized marine operations and strict environmental compliance.
The agreement with Saipem demonstrates Petrobras’ intention to strengthen operational efficiency while leveraging international expertise in offshore engineering and subsea services. Saipem possesses extensive experience in offshore construction, vessel operations and subsea engineering projects, making it a valuable strategic partner for complex decommissioning campaigns.
The collaboration also signals Brazil’s increasing importance as a long-term offshore decommissioning hub, attracting global engineering firms and service providers seeking opportunities in large-scale infrastructure retirement projects.
Plug and Abandonment Activities Take Center StageOne of the most important areas covered under the memorandum involves plug and abandonment (P&A) operations, commonly referred to as P&A activities. These operations focus on the permanent and safe closure of oil and natural gas wells once production ends.
Well abandonment is among the most technically challenging aspects of offshore decommissioning because it requires strict regulatory compliance, advanced engineering precision and strong environmental safeguards. Improperly abandoned wells can create long-term environmental and operational risks, making high-quality execution essential.
Petrobras and Saipem aim to improve methodologies associated with these activities while identifying innovative solutions capable of reducing costs and improving operational performance. Their cooperation may include evaluating advanced drilling technologies, offshore intervention systems and specialized marine assets designed to streamline abandonment campaigns.
The companies are also expected to examine opportunities for integrating specialized partners and institutions into the decommissioning process. This collaborative approach could support technological development and improve operational standards across Brazil’s offshore sector.
Subsea Infrastructure Decommissioning Gains ImportanceBrazil’s offshore production system includes a vast network of subsea infrastructure developed through decades of exploration and production activity. Flexible risers, subsea pipelines, manifolds and underwater production systems now require specialized retirement solutions as certain offshore fields mature.
The Petrobras-Saipem partnership specifically addresses subsea decommissioning activities, an area that continues to gain strategic importance within the offshore energy industry. Decommissioning subsea systems in deepwater environments requires advanced engineering expertise and sophisticated marine capabilities due to the operational complexity involved.
Saipem’s offshore engineering experience positions it to support PBR in addressing these technical challenges. The Italian contractor has extensive capabilities in heavy lifting operations, subsea construction and offshore vessel deployment, all of which are critical for large-scale infrastructure retirement projects.
The cooperation is expected to focus on improving operational efficiency while reducing environmental impact during subsea removal and abandonment activities. As Brazil advances its offshore decommissioning agenda, the development of innovative subsea solutions may become increasingly valuable for the broader energy industry.
Petrobras Focuses on Sustainability and Operational InnovationSustainability remains a central priority within modern offshore decommissioning strategies. Global energy companies are under increasing pressure to manage aging infrastructure responsibly while minimizing environmental risks associated with offshore retirement operations.
The agreement between Petrobras and Saipem emphasizes the improvement of sustainability and innovation standards for end-of-life offshore activities. Both companies intend to evaluate operational practices capable of enhancing environmental performance while improving project execution efficiency.
Advanced technologies, digital monitoring systems and optimized offshore logistics may play an important role in future decommissioning projects. Petrobras and Saipem are also expected to explore operational alternatives involving drilling rigs, support vessels and integrated marine systems aimed at reducing project complexity and execution timelines.
These initiatives align with broader global trends as offshore operators increasingly prioritize responsible asset retirement alongside long-term operational efficiency.
Strategic Offshore Collaboration Supports Long-Term GrowthThe one-year memorandum establishes a foundation for broader strategic cooperation between Petrobras and Saipem in Brazil’s expanding offshore decommissioning market. The agreement highlights the growing need for integrated engineering solutions capable of addressing the technical, environmental and logistical challenges associated with large-scale offshore infrastructure retirement.
Petrobras’ decommissioning investment program represents one of the most ambitious offshore retirement initiatives currently underway in the global energy sector. As offshore assets continue to mature, partnerships between operators and specialized engineering firms are expected to become increasingly important.
The collaboration between Petrobras and Saipem demonstrates how major energy companies are adapting to the next phase of offshore development, where responsible decommissioning and infrastructure management are becoming essential components of long-term industry strategy.
With billions of dollars allocated to upcoming projects, Brazil is positioning itself as a critical offshore decommissioning market, creating substantial opportunities for engineering contractors, marine service providers and subsea specialists throughout the remainder of the decade.
PBR's Zacks Rank & Other Key PicksCurrently, PBR flaunts a Zacks Rank #1 (Strong Buy), while SAPMF carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some other top-ranked stocks like APA Corporation (APA - Free Report) and Canadian Natural Resources Limited (CNQ - Free Report) , sporting a Zacks Rank #1 each at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.
APA Corporation is valued at $13.9 billion. It is an independent exploration and production company engaged in developing oil and natural gas assets across the United States, Egypt and the North Sea. APA Corporation focuses on disciplined capital spending and operational efficiency to strengthen production growth and shareholder returns.
Canadian Natural Resources is valued at $101.48 billion. The company is one of Canada’s largest energy producers, with a diversified portfolio that includes crude oil, natural gas and oil sands operations. Canadian Natural Resources’ long-life, low-decline asset base supports stable cash flows and enables it to maintain a strong dividend profile.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Petrobras (PBR - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Petrobras currently has an average brokerage recommendation (ABR) of 1.61, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. An ABR of 1.61 approximates between Strong Buy and Buy.
Of the nine recommendations that derive the current ABR, six are Strong Buy, representing 66.7% of all recommendations.
Brokerage Recommendation Trends for PBR
Check price target & stock forecast for Petrobras here>>>
The ABR suggests buying Petrobras, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in PBR?In terms of earnings estimate revisions for Petrobras, the Zacks Consensus Estimate for the current year has increased 13.9% over the past month to $4.72.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
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 #1 (Strong Buy) for Petrobras. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Petrobras may serve as a useful guide for investors.
A logo of Brazilian National Development Bank (BNDES) is seen during a swearing-in ceremony of the bank's new president, in Rio de Janeiro, Brazil, January 8, 2019. REUTERS/Sergio Moraes Purchase Licensing Rights, opens new tab
CompaniesRIO DE JANEIRO, May 22 (Reuters) - Brazil's state development bank BNDES has cut its stake in state-run oil firm Petrobras and in power company Axia Energia , selling shares from both this month, four sources told Reuters on condition of anonymity.
Petrobras and Axia, along with electric utility firm Copel (CPLE3.SA), opens new tab and meatpacker JBS , account for the largest portion of BNDES' equity portfolio, which it holds through subsidiary BNDESPar.
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One of the sources said that BNDESPar sold this month around 3 billion reais ($597.75 million) worth of Petrobras' shares, and more than 500 million reais in Axia's stock.
The person also said the bank divested 280 million reais in Copel in May, bringing total sales from the energy company's shares to 1.2 billion reais this year.
"These are stocks trading at elevated levels, and the bank saw an opportunity to realize gains through the sales," a BNDES source said.
BNDES said in a statement that it continuously evaluates investment and divestment opportunities within its portfolio, but did not confirm the transactions.
In Petrobras' case, the shares sold do not carry voting rights, which means there was no impact on the bank's strategy and planning, another source added.
Petrobras said it does not comment on ongoing negotiations, while Axia declined a request for comment.
BNDES President Aloizio Mercadante said in September the bank had adopted a strategy of divesting from mature companies and traditional sectors in order to support strategic sectors, but said it did not intend to sell its stake in Petrobras.
In March, BNDESPar acted as the anchor investor in a capital increase for companies within Simpar (SIMH3.SA), opens new tab, including truck rental firm Vamos (VAMO3.SA), opens new tab, car rental company Movida (MOVI3.SA), opens new tab, and road logistics firm JSL (JSLG3.SA), opens new tab.
($1 = 5.0188 reais)
Reporting by Rodrigo Viga Gaier and Pedro Fonseca in Rio de Janeiro; Writing by Fernando Cardoso; Editing by David Gregorio
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Petroleo Brasileiro S.A., or Petrobras ( PBR ) and APA Corporation APA have both benefited from improving sentiment toward oil and gas stocks, with their shares posting similar gains recently.
For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Petrobras (PBR - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.
Petrobras is one of 238 companies in the Oils-Energy group. The Oils-Energy group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Petrobras is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for PBR's full-year earnings has moved 100.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, PBR has returned 67.9% so far this year. Meanwhile, stocks in the Oils-Energy group have gained about 30.7% on average. This means that Petrobras is outperforming the sector as a whole this year.
Helix Energy (HLX - Free Report) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 60.8%.
In Helix Energy's case, the consensus EPS estimate for the current year increased 13.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Petrobras belongs to the Oil and Gas - Integrated - International industry, a group that includes 16 individual stocks and currently sits at #5 in the Zacks Industry Rank. On average, this group has gained an average of 28.8% so far this year, meaning that PBR is performing better in terms of year-to-date returns.
On the other hand, Helix Energy belongs to the Oil and Gas - Field Services industry. This 19-stock industry is currently ranked #195. The industry has moved +47.2% year to date.
Investors with an interest in Oils-Energy stocks should continue to track Petrobras and Helix Energy. These stocks will be looking to continue their solid performance.
Petrobras is a low-cost oil producer with a breakeven near $50/barrel and strong leverage to elevated Brent prices. PBR trades at a steep valuation discount to global peers, reflecting Brazil-specific political and debt risks, but offers a compelling forward yield potential. I expect a sustainable dividend yield approaching 10% at a 50% payout ratio, with upside as new FPSOs and higher oil prices flow through results.
Petrobras presents a mixed outlook after FQ1 results, with EPS and revenue below consensus and a 15% YOY dividend decline. Despite the prevailing bullish sentiment and a low forward P/E (~4.8x), I maintain a more tempered view on PBR. Several downside risks offset the positives behind the prevailing optimism.
Brazil's state-run oil firm Petrobras' negotiation with SBM Offshore for two floating oil and gas production vessels (FPSO) for its Sergipe deepwater project is done, an executive from the company said on Thursday.
Brazil's state-run oil firm, Petrobras, will lower diesel prices to distributors by 0.3515 reais per liter starting on June 1, it said in a statement on Sunday, after the government announced a cashback system to producers and importers.
Key Takeaways PBR will lower average diesel prices to distributors by 0.3515 reais per liter, a 9.6% cut.PBR's diesel price cut is tied to a federal subsidy offsetting reinstated PIS and Cofins taxes.PBR's first diesel reduction since March follows a prior increase to 3.65 reais per liter. Petrobras (PBR - Free Report) , Brazil’s state-controlled Integrated oil and gas company, has announced a major reduction in domestic diesel prices, set to take effect starting Monday. This move, part of a federal government subsidy program, aims to shield Brazilian consumers from the global instability caused by the ongoing conflict in the Middle East.
The company stated that it is reducing the average diesel selling price to distributors by 0.3515 reais per liter, representing a 9.6% decrease. The adjustment lowers the price from 3.65 reais to 3.3 reais per liter.
According to Petrobras, the reduction is connected to a government initiative that offsets the impact of the reinstated Programa de Integração Social (“PIS”) and Contribuição para o Financiamento da Seguridade Social (Cofins) fuel taxes. The subsidy mechanism helps prevent higher fuel costs from being passed on to consumers and businesses.
Impact of Diesel Price Reduction on Brazilian ConsumersThis price adjustment marks a critical shift for the Brazilian energy market, particularly for industries reliant on diesel fuel, including transportation, agriculture and logistics. Lower diesel prices are expected to reduce operational costs for trucking companies, agricultural producers and public transportation systems, potentially translating to more stable prices for consumer goods across the country.
In the context of global energy volatility, Brazil’s strategic subsidy program reinforces the government’s commitment to economic stability, ensuring that domestic consumption is less vulnerable to international crises. Analysts predict that this reduction could temporarily buffer inflationary pressures, particularly in sectors heavily dependent on fuel.
PBR’s Strategic Price Adjustments and Historical ContextThe reduction marks the first diesel price cut since Petrobras raised domestic diesel prices to 3.65 reais per liter in March. The latest adjustment follows a recent increase in gasoline prices, reflecting Petrobras’ efforts to manage domestic fuel pricing while complying with government policies.
The move highlights the role of state intervention in Brazil’s energy market, where fuel pricing remains closely linked to economic and social policy objectives. Through this adjustment, Petrobras aligns its pricing decisions with federal measures aimed at supporting consumers and businesses.
Government Subsidy Program and Tax Offset MechanismThe diesel price cut is facilitated by a federal subsidy program aimed at offsetting PIS and Cofins fuel taxes, which had been reinstated. These taxes, typically levied on fuel distribution, have significant implications for end-user prices. The subsidy effectively neutralizes the impact of these taxes, ensuring that the price reduction is fully reflected at the consumer level.
This intervention highlights the government’s strategic use of fiscal tools to maintain energy affordability, particularly for low and middle-income households, as well as for businesses where fuel costs represent a major portion of operational expenditures.
Economic and Market Implications of Diesel Price ReductionThe reduction of diesel prices is anticipated to stimulate economic activity by lowering transportation costs, which can contribute to broader price stability in consumer goods and services. Additionally, this adjustment may influence regional trade dynamics, as Brazilian exports and distribution logistics benefit from reduced operational expenses.
This move could also affect investor sentiment, signaling that Petrobras is actively managing domestic price volatility while adhering to government policy objectives. Lower diesel prices may improve public perception of Petrobras, enhancing its reputation as a socially responsible energy provider.
Outlook for Petrobras and the Brazilian Fuel MarketLooking ahead, Petrobras may continue to adjust domestic fuel prices in alignment with global oil trends and federal economic policies. While this diesel reduction represents immediate relief, the company remains poised to respond to fluctuations in international crude oil prices, regional supply challenges and domestic fiscal policy changes.
The implementation of this subsidy-driven price cut illustrates the Brazilian government’s capacity to manage critical economic levers, ensuring that fuel affordability is maintained without undermining Petrobras’ long-term financial stability.
Conclusion: Strategic Measures Protect Consumers Amid Global InstabilityPetrobras’ diesel price reduction is a strategic intervention designed to protect Brazilian consumers and businesses from the economic fallout of Middle East conflicts. By implementing a 9.6% reduction and leveraging a federal subsidy to offset fuel taxes, the company demonstrates a commitment to stabilizing the domestic energy market.
This initiative reinforces Brazil’s proactive approach to energy management, fiscal responsibility and consumer protection, ensuring that essential commodities remain accessible during times of global uncertainty.
The combined effect of strategic pricing, government subsidies and proactive market management positions Petrobras as a key pillar of Brazil’s economic resilience, safeguarding both consumer interests and national energy security.
PBR's Zacks Rank & Key PicksCurrently, PBR has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Chevron (CVX - Free Report) , Imperial Oil (IMO - Free Report) and Marathon Petroleum (MPC - Free Report) , sporting a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron is valued at $363.39 billion. It is one of the world's largest integrated energy companies, engaged in oil and natural gas exploration, production, refining and marketing across multiple continents. Chevron is also investing in lower-carbon technologies, including renewable fuels, hydrogen and carbon capture, to support the global energy transition.
Imperial Oil is valued at $57.41 billion. It is a major Canadian petroleum company involved in crude oil production, refining and fuel distribution, with operations concentrated in Canada. A majority-owned subsidiary of ExxonMobil, Imperial Oil benefits from advanced technology and expertise while maintaining a strong presence in Canada's energy sector.
Marathon Petroleum is valued at $72.63 billion. It is one of the largest downstream energy companies in the United States, operating extensive refining, transportation and fuel marketing networks. Through its refining assets and retail fuel brands, Marathon Petroleum supplies gasoline, diesel and other petroleum products to consumers and businesses nationwide.
Key Takeaways Petrobras awarded SBM Offshore contracts for two FPSOs to advance Sergipe-Alagoas basin output.SEAP-I and SEAP-II FPSOs can each produce 120,000 barrels daily, with major gas capacity.Integrated gas exports will boost Brazil's energy supply while supporting regional growth. Petróleo Brasileiro S.A. - Petrobras (PBR - Free Report) has taken another important step in advancing the Sergipe-Alagoas deepwater development by awarding contracts for two new floating production, storage and offloading units (FPSOs) to SBM Offshore. The projects, known as SEAP-I (P-81) and SEAP-II (P-87), will support the company's efforts to unlock the significant hydrocarbon potential of the Sergipe-Alagoas Basin, located offshore northeastern Brazil.
Under the agreements, SBM Offshore will design, build and operate the FPSOs, while Petrobras-led consortia will retain ownership of the facilities. The contracts also include operations and maintenance services for an initial period of 6.5 years.
PBR Expands Production Capacity in a Key Offshore BasinThe two FPSOs will play a central role in developing one of Petrobras’ most promising offshore regions.
The SEAP-II FPSO (P-87), expected to be delivered in 2030, will have the capacity to produce 120,000 barrels of oil per day. It will also be capable of treating 425 million standard cubic feet of gas per day and injecting 120,000 barrels of water daily. The unit will operate approximately 80 kilometers offshore in water depths of around 2,500 meters.
The SEAP-I FPSO (P-81), scheduled for delivery in 2031, will likewise produce up to 120,000 barrels of oil per day. It will feature a gas treatment capacity of 355 million standard cubic feet per day and a water injection capacity of 200,000 barrels per day. The vessel will be deployed roughly 100 kilometers offshore in similar water depths.
Together, these facilities will significantly enhance Petrobras’ production capabilities in the basin while supporting long-term resource development.
Leveraging Proven FPSO TechnologyBoth units will be based on SBM Offshore’s Fast4Ward program, utilizing the company’s 11th and 12th new-build multipurpose floater hulls. The standardized design approach is expected to improve project execution efficiency, reduce development risks and support timely delivery.
By deploying proven FPSO solutions, Petrobras aims to accelerate the development of offshore resources while maintaining operational reliability and performance.
Supporting Brazil’s Natural Gas MarketA defining feature of the Sergipe-Alagoas development is its integrated gas export strategy. Both FPSOs will be connected to an export pipeline system that will transport associated gas directly to shore.
This infrastructure enables Petrobras to commercialize natural gas production alongside oil output, increasing the overall value of the project. The approach also reduces the need for offshore gas flaring and reinjection, supporting more efficient resource utilization.
By bringing additional gas supplies to the domestic market, Petrobras will contribute to improving energy availability in Brazil while strengthening the country's natural gas infrastructure.
PBR Helps Drive Regional Economic GrowthBeyond increasing energy production, the Sergipe-Alagoas project is expected to generate long-term economic benefits for northeastern Brazil. The development will support job creation, stimulate local supply chains and encourage investment in regional infrastructure.
As Petrobras advances these large-scale offshore projects, the company continues to reinforce its commitment to responsible resource development, energy security and sustainable economic growth.
Looking AheadThe addition of FPSOs P-81 and P-87 marks a significant milestone in Petrobras’ strategy to expand production from high-potential offshore assets. With substantial oil and gas processing capabilities, advanced offshore infrastructure and a strong focus on domestic energy supply, the Sergipe-Alagoas development is positioned to become an important contributor to Brazil’s energy future.
As the project progresses toward first production later this decade, Petrobras continues to strengthen its offshore portfolio while creating value for shareholders, customers and the broader Brazilian economy.
PBR’s Zacks Rank & Key PicksPetrobras is the largest integrated energy firm in Brazil, and its activities include exploration and production of oil, as well as refining, processing, trading and transportation. Currently, PBR carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may consider some top-ranked stocks like Cenovus Energy Inc. (CVE - Free Report) , Chord Energy Corporation (CHRD - Free Report) and Diversified Energy Company (DEC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Calgary, Canada-based Cenovus Energy is a leading integrated energy firm. Starting from pumping out oil from its oil sands projects in Canada, the company’s operations comprise marketing the produced oil, natural gas and natural gas liquids. The Zacks Consensus Estimate for CVE’s 2026 earnings indicates 104.6% year-over-year growth.
Chord Energy's operations span across the Bakken and Three Forks formations, where the company boasts an impressive base of high-quality, oil-weighted resources. The Zacks Consensus Estimate for CHRD’s 2026 earnings indicates 115.4% year-over-year growth.
Diversified Energy Company is an energy company focused on natural gas and liquids production, transport, marketing and well retirement. The Zacks Consensus Estimate for DEC’s 2026 earnings indicates a 4% year-over-year decline.
