In the latest trading session, GE Vernova (GEV) closed at $842.00, marking a -4.45% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.94%. Meanwhile, the Dow lost 0.83%, and the Nasdaq, a tech-heavy index, lost 1.02%.
Coming into today, shares of the the energy business spun off from General Electric had gained 16.72% in the past month. In that same time, the Oils-Energy sector gained 12.58%, while the S&P 500 lost 1.3%.
The investment community will be paying close attention to the earnings performance of GE Vernova in its upcoming release. In that report, analysts expect GE Vernova to post earnings of $1.8 per share. This would mark year-over-year growth of 97.8%. Meanwhile, our latest consensus estimate is calling for revenue of $9.19 billion, up 14.39% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.96 per share and revenue of $44.67 billion. These totals would mark changes of -21.09% and +17.34%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for GE Vernova. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, GE Vernova boasts a Zacks Rank of #3 (Hold).
In the context of valuation, GE Vernova is at present trading with a Forward P/E ratio of 63.11. This denotes a premium relative to the industry average Forward P/E of 18.86.
It's also important to note that GEV currently trades at a PEG ratio of 3.51. 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 Alternative Energy - Other was holding an average PEG ratio of 2.03 at yesterday's closing price.
The Alternative Energy - Other industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 34% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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