GEV Stock Surges 9.7% in a Month: Time to Hold or Book Profits?

GE Vernova Inc.’s GEV shares have risen 9.7% over the past month, outperforming its Zacks Alternate Energy – Other industry’s growth of 5.4%. A significant advantage of the rapidly expanding AI data center construction is that these establishments need enormous amounts of electricity, which GE Vernova can supply with its turbines and grid equipment.
 

Other alternative energy stocks, such as Crescent Energy Company CRGY and Bloom Energy BE, have also outperformed the industry during the past month. Shares of Crescent Energy and Bloom Energy have risen 23.9% and 26.5%, 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 February 2026, GE Vernova’s Onshore Wind business announced that it received orders in 2025 to repower 1.1 gigawatts (GW) of onshore wind turbines in the United States. These repower projects are expected to reach their commercial operation dates between 2026 and 2027. Repowering increases the size, output and longevity of existing turbines, enabling the capture of more reliable renewable energy over a longer period.

GE Vernova stands to benefit from the new strategic alliance with Xcel Energy by securing significant equipment reservations and long-term collaboration opportunities, including orders for F-class gas turbines and capacity reservations for multiple gigawatts of wind turbines that will be manufactured at GE Vernova facilities, boosting sales. 

In February 2026, GE Vernova announced the launch of GridOS for Distribution, a unified software solution that is designed to enable utilities to operate their distribution grids as one intelligent, orchestrated system. This strengthens GEV’s position in the fast-growing grid software market, increasing long-term recurring revenue potential from software services. 

Recently, GE Vernova completed the full acquisition of Prolec GE. This expands its Electrification segment footprint — especially in North America — enhances its product portfolio and manufacturing scale, and positions it to better meet surging demand for critical grid infrastructure.

GEV Stock’s Earnings Estimates

The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an increase of 8.64% in the past 60 days. GEV’s long-term (three to five years) earnings growth rate is 18%.
 

The Zacks Consensus Estimate for Crescent Energy’s 2026 EPS indicates a decrease of 5.04% in the past 60 days. The bottom-line estimate for Bloom Energy’s 2026 EPS implies an increase of 2.15% in the past 60 days. BE’s long-term earnings growth rate is 25%.

Challenges Faced by GEV

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

Throughout 2025, the United States and other countries imposed global tariffs. These tariffs have led to additional costs, and any future tariffs are likely to do the same. The total impact of global tariffs in full-year 2025 was nearly $250 million, after contractual protections and mitigation measures.

GEV’s Earnings Surprise History

The company beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 112.41%.

GEV’s Return on Equity Higher Than Industry

The company’s trailing 12-month return on equity of 46.91% is higher than the industry average of 6.39%. 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 52.15X, a premium compared to its industry’s 22.39X on a forward 12-month P/E basis.

What Should Investors Do?

GE Vernova is strengthening growth by improving wind profitability, benefiting from rising AI- and data-center-driven power demand, and securing long-term turbine and service opportunities through strategic alliances and repowering projects. The launch of GridOS software and the full acquisition of Prolec GE further expand recurring digital revenues and electrification scale, positioning the company to meet accelerating grid and infrastructure demand.

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.

 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research