In the latest close session, GE Vernova (GEV) was down 1.49% at $621.90. This change lagged the S&P 500's daily loss of 0.35%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Coming into today, shares of the the energy business spun off from General Electric had gained 9.77% in the past month. In that same time, the Oils-Energy sector gained 3.38%, while the S&P 500 gained 1.2%.
The investment community will be closely monitoring the performance of GE Vernova in its forthcoming earnings report. It is anticipated that the company will report an EPS of $3.05, marking a 76.3% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $10.06 billion, showing a 4.73% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.47 per share and revenue of $37.17 billion. These totals would mark changes of +33.87% and +6.4%, respectively, from last year.
Any recent changes to analyst estimates for GE Vernova should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. GE Vernova is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, GE Vernova is at present trading with a Forward P/E ratio of 84.51. This indicates a premium in contrast to its industry's Forward P/E of 21.23.
It's also important to note that GEV currently trades at a PEG ratio of 4.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. GEV's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 41% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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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