GE Vernova (GEV) closed the most recent trading day at $681.35, moving +1.44% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.16% for the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.59%.
The the energy business spun off from General Electric's shares have seen an increase of 16.15% over the last month, surpassing the Oils-Energy sector's loss of 0.62% and the S&P 500's loss of 0.21%.
Analysts and investors alike will be keeping a close eye on the performance of GE Vernova in its upcoming earnings disclosure. In that report, analysts expect GE Vernova to post earnings of $2.99 per share. This would mark year-over-year growth of 72.83%. Meanwhile, our latest consensus estimate is calling for revenue of $10.05 billion, down 4.77% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $7.28 per share and a revenue of $37.03 billion, demonstrating changes of +30.47% and +5.99%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for GE Vernova. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.49% decrease. At present, GE Vernova boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, GE Vernova is currently exchanging hands at a Forward P/E ratio of 92.21. For comparison, its industry has an average Forward P/E of 20.03, which means GE Vernova is trading at a premium to the group.
Investors should also note that GEV has a PEG ratio of 5.12 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Alternative Energy - Other industry stood at 1.98 at the close of the market yesterday.
The Alternative Energy - Other industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 137, putting it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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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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