In the latest trading session, GE Vernova (GEV) closed at $633.69, marking a +1.82% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.32%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw an increase of 0.53%.
Coming into today, shares of the the energy business spun off from General Electric had lost 4.98% in the past month. In that same time, the Oils-Energy sector gained 1.39%, while the S&P 500 gained 1.52%.
Investors will be eagerly watching for the performance of GE Vernova in its upcoming earnings disclosure. On that day, GE Vernova is projected to report earnings of $2.01 per share, which would represent year-over-year growth of 474.29%. Meanwhile, our latest consensus estimate is calling for revenue of $9.27 billion, up 3.98% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $8.04 per share and a revenue of $37.29 billion, demonstrating changes of +44.09% and +6.72%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for GE Vernova. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. GE Vernova currently has a Zacks Rank of #3 (Hold).
In the context of valuation, GE Vernova is at present trading with a Forward P/E ratio of 77.42. Its industry sports an average Forward P/E of 18.75, so one might conclude that GE Vernova is trading at a premium comparatively.
Also, we should mention that GEV has a PEG ratio of 4.3. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Alternative Energy - Other was holding an average PEG ratio of 2.5 at yesterday's closing price.
The Alternative Energy - Other industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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GE Vernova Inc. (GEV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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