In the latest close session, GE Vernova (GEV) was up +1.1% at $839.20. The stock outpaced the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 0.01%.
The stock of the energy business spun off from General Electric has risen by 3.56% in the past month, lagging the Oils-Energy sector's gain of 6.06% and overreaching the S&P 500's loss of 2.26%.
Analysts and investors alike will be keeping a close eye on the performance of GE Vernova in its upcoming earnings disclosure. The company is expected to report EPS of $1.8, up 97.8% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $9.19 billion, showing a 14.39% escalation compared to the year-ago quarter.
GEV's full-year Zacks Consensus Estimates are calling for earnings of $13.96 per share and revenue of $44.67 billion. These results would represent year-over-year changes of -21.09% and +17.34%, respectively.
Any recent changes to analyst estimates for GE Vernova should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. 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 59.45. This denotes a premium relative to the industry average Forward P/E of 18.33.
We can also see that GEV currently has a PEG ratio of 3.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Alternative Energy - Other industry had an average PEG ratio of 1.8.
The Alternative Energy - Other industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 37% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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