In the latest trading session, GE Vernova (GEV) closed at $662.32, marking a -3.5% move from the previous day. This move lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, added 0.16%.
The stock of the energy business spun off from General Electric has risen by 9.76% in the past month, leading the Oils-Energy sector's loss of 1.8% and the S&P 500's gain of 1.19%.
Market participants will be closely following the financial results of GE Vernova in its upcoming release. The company's earnings per share (EPS) are projected to be $2.99, reflecting a 72.83% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $10.05 billion, showing a 4.77% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.29 per share and a revenue of $37.03 billion, indicating changes of +30.65% and 0%, respectively, from the former year.
Any recent changes to analyst estimates for GE Vernova should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. The Zacks Consensus EPS estimate has moved 2.7% higher within the past month. GE Vernova is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, GE Vernova is presently trading at a Forward P/E ratio of 51.73. This represents a premium compared to its industry average Forward P/E of 19.07.
Also, we should mention that GEV has a PEG ratio of 2.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Alternative Energy - Other industry held an average PEG ratio of 1.17.
The Alternative Energy - Other industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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