In the latest close session, GE Vernova (GEV) was up +1.93% at $652.09. The stock outperformed the S&P 500, which registered a daily loss of 0.19%. Elsewhere, the Dow saw a downswing of 0.8%, while the tech-heavy Nasdaq depreciated by 0.1%.
Shares of the the energy business spun off from General Electric have depreciated by 6.1% over the course of the past month, underperforming the Oils-Energy sector's gain of 0.24%, and the S&P 500's gain of 2.26%.
The investment community will be closely monitoring the performance of GE Vernova in its forthcoming earnings report. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $10.05 billion, down 4.77% from the year-ago period.
GEV's full-year Zacks Consensus Estimates are calling for earnings of $7.29 per share and revenue of $37.03 billion. These results would represent year-over-year changes of +30.65% and 0%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for GE Vernova. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. As of now, GE Vernova holds a Zacks Rank of #3 (Hold).
Digging into valuation, GE Vernova currently has a Forward P/E ratio of 48.22. This indicates a premium in contrast to its industry's Forward P/E of 18.34.
Investors should also note that GEV has a PEG ratio of 2.68 right now. 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 1.24 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 159, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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