GE Vernova Stock Rises 13.2% in Three Months: Should You Invest Now?

GE Vernova Inc.’s GEV shares have risen 13.2% over the past three months, outperforming its Zacks Alternate Energy – Other industry’s decline of 2.7%. The company's gas turbines give data centers the massive, consistent power they need, positioning itself as a major supplier in this expanding sector and opening doors for long-term contracts and recurring income.
 

Other alternative energy stocks, such as Constellation Energy Corporation CEG and Talen Energy Corporation TLN, have underperformed the industry in the past three months. Shares of Constellation Energy and Talen Energy have lost 1% and 9.2%, respectively, over the said period.

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 GEV

GE Vernova is improving profitability in its wind business through cost discipline while its gas and power services remain strong. Rising data-center and AI-driven electricity demand is creating broader growth opportunities.

In January 2026, GEV announced the start of commercial operation of PetroVietnam Power Corporation’s Nhon Trach 3&4 1.6-gigawatt (GW) Power Plant in the Ong Keo Industrial Park. The successful commercial operation strengthens its presence and credibility in Southeast Asia, positioning the company to secure future gas and power infrastructure projects as regional electricity demand rises. It also reinforces GE Vernova’s technology leadership in high-efficiency, flexible gas turbines that support energy transition goals. 

In December 2025, GE Vernova announced an agreement to supply 42 of its 6 MW-class wind turbines for the 256 MW Carmody’s Hill Wind Farm in South Australia. This will boost its wind business through direct revenues from turbine sales and installation, while the included five-year full-service operations and maintenance contract provides ongoing, high-margin aftermarket income.

During the same month, GE Vernova was awarded a major contract to supply high-voltage direct current technology for the 2.5 GW Khavda–South Olpad renewable power transmission corridor in India. This will position the company for substantial growth in the fast-expanding energy transmission market.

These agreements reinforce GE Vernova’s leadership in electrification technologies that support global energy transition goals and boost investor confidence.

GEV Stock’s Earnings Estimates

The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an increase of 4.16% in the past 60 days. GEV’s long-term (three to five years) earnings growth rate is 18%.
 

The Zacks Consensus Estimate for Constellation Energy’s 2026 EPS indicates a decrease of 0.97% in the past 60 days. CEG’s long-term earnings growth rate is 15.42%. The bottom-line estimate for Talen Energy’s 2026 EPS implies an increase of 1.79% in the past 60 days. TLN’s long-term earnings growth rate is 29.71%.

Challenges Faced by GEV

The company relies on complex global supply networks for components used in its gas turbines, wind turbines and grid infrastructure. Specifically, it purchases nearly $20 billion in materials and components sourced from more than 100 countries. Therefore, 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, thereby hurting its bottom line.

The company expects global tariffs imposed in 2025 to increase costs. However, after accounting for contractual protections and mitigation efforts, the total impact is projected to be at the lower end of the estimated $300-$400 million range for the year.

GEV’s Earnings Surprise History

The company beat on earnings in two of the trailing four quarters and missed in two, delivering an average surprise of 21.29%.

GEV’s Return on Equity Higher Than Industry

The company’s trailing 12-month return on equity of 17.07% is higher than the industry average of 6.37%. Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.

GEV Stock Trades at a Premium

GE Vernova is currently trading at 51.2X, a premium compared to its industry’s 21.11X on a forward 12-month P/E basis.

What Should Investors Do?

GE Vernova is strengthening profitability and growth through disciplined execution across wind, gas, power, and grid businesses, supported by rising AI- and data-center-driven electricity demand. Recent contract wins further enhance its global footprint, expand high-margin service revenues, and reinforce leadership in energy transition and electrification technologies.

However, given its current premium valuation, it is advisable for current shareholders to stay invested, while new investors may prefer to wait for a better entry point. GEV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

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This article originally published on Zacks Investment Research (zacks.com).

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