GE Vernova Boosts its FLEXINVERTER Platform: Should You Buy the Stock Now?

GE Vernova Inc. GEV recently announced two major upgrades to its FLEXINVERTER platform — the introduction of a high-efficiency 1.5kV silicon carbide-based solution for battery storage and the expansion of its 2kV solar inverter to global International Electrotechnical Commission markets. With manufacturing for the FLEXINVERTER platform expected to ramp up at GEV’s facilities in India and the United States, product shipments are expected to commence by the first half of 2026. 

These innovations promise lower system costs, higher energy efficiency and stronger project economics, and thus might encourage investors seeking long-term value in the energy transition space to add GEV to their portfolio.

However, before making any hasty decision, let’s delve into the company’s performance at the bourses in recent times, growth prospects as well as risks (if any). This way, an investor can make a prudent and informed decision.

GEV Stock Outperforms Industry, Sector & S&P 500

Shares of GE Vernova have surged an impressive 23.7% in the year-to-date period, outperforming the Zacks Alternative-Energy industry’s growth of 8.9% and the broader Zacks Oils-Energy sector’s decline of 7%. It has also outpaced the S&P 500’s fall of 5%.

A similar stellar performance has been delivered by other industry players, such as Constellation Energy Corporation CEG and Talen Energy Corporation TLN, whose shares have surged 19.9% and 14.8%, respectively, year to date.

What’s Been Pushing GEV Stock Up?

The worldwide transition to clean energy remains a major growth driver for GEV, a leading provider of renewable energy equipment and services.  Impressively, the company invested more than $100 million in the first quarter of 2025 to improve the performance of its 57,000 wind turbines installed worldwide. 

To this end, it is imperative to mention that the recent developments announced by GE Vernova reflect its continuing efforts to expand GEV’s footprint in the clean energy industry as a major provider of sustainable and low-carbon-emitting energy. This, in turn, might have boosted investors’ confidence in this stock, as evident from the aforementioned share price hike. 

In May 2025, GE Vernova was selected by Power Grid Corporation of India Limited to supply over 70 extra-high-voltage transformers and shunt reactors for key transmission projects across India. Notably, POWERGRID is India’s largest electric power transmission utility and plays a central role in renewable energy integration. In April, the company revealed the AGP XPAND upgrade to boost its 9E.03 gas turbines' capacity across the world. In the same month, GEV signed a partnership deal with Duke Energy for natural gas turbines and other associated equipment to meet the growing needs of advanced manufacturing, data centers and population growth. 

The company also signed agreements in April to supply three of its 6.0 MW-164m (megawatt-meter) workhorse wind turbines to community wind farms consulted by Germany’s BBWind. 

Can GEV Stock Hold on to its Winning Streak?

Global electricity consumption rose an estimated 4.3% year over year in 2024, with growth expected to continue at a robust 3.9% in 2025 (as per the latest report published by the International Energy Agency). 

Such impressive growth projections should bode well for GE Vernova’s grid solution equipment and services in the long run. Notably, during the first quarter of 2025, the company witnessed strong year-over-year equipment order growth (within its Electrification segment) of 44% in North America and 92% in Asia. This order growth reflects GEV’s prowess in the renewable electric generation industry, and considering the global electricity consumption forecast, the company can be expected to continue to witness such order growth in the coming years, which, in turn, should significantly boost its operating results.

In line with this, the Zacks Consensus Estimate for GEV’s long-term (three-to-five years) earnings growth rate is pegged at a solid 18%. 

The growing electricity consumption trend worldwide, along with increasing adoption of renewable energy, should also bolster the growth prospects of other renewable energy stocks like TLN and CEG.  Notably, the long-term earnings growth rate for Talen Energy is 6.7%, while that for Constellation Energy is 12.4%.  

Now, let’s take a quick look at GEV’s near-term estimates to see if they have a similar growth story.

Estimates for GEV

The Zacks Consensus Estimate for 2025 and 2026 sales implies an improvement of 5.7% and 9.4%, respectively, year over year. The consensus mark for annual earnings also reflects solid year-over-year growth. 

Moreover, the Zacks Consensus Estimate for 2025 and 2026 earnings per share has moved north 9.6% and 0.5%, respectively, over the past 60 days. The upward revision in earnings estimates indicates analysts’ increasing confidence in the stock’s earnings-generating capability.

Risks to Consider Before Choosing GEV

Despite the aforementioned growth opportunities, GEV faces certain challenges that one should consider before investing in this stock.  To this end, it is essential to note that the offshore wind industry has been facing increased challenges recently, including rising material costs and persistent supply-chain issues. This, in turn, has led to several project cancellations in recent times. 

As a manufacturer of wind turbines, GEV has been experiencing pressure in its Offshore Wind business related to its product and project costs. Its first-quarter results reflected increased Offshore Wind losses due to a one-time termination of a supply agreement. Changes in execution timelines or other adverse developments may affect GEV’s cash collection timelines and contract profitability, potentially resulting in losses exceeding current expectations.

GEV Stock Trading at a Premium

In terms of valuation, GEV’s forward 12-month price-to-earnings (P/E) is 47.13X, a premium to its peer group’s average of 15.92X. This suggests that investors will be paying a higher price than the company's expected earnings growth compared to its peers.

On the contrary, GEV’s industry peers are trading at a discount. While TLN is trading at a forward 12-month P/E of 21.89X, CEG is trading at 26.32X. 

Final Thoughts

To conclude, investors interested in GEV Vernova should wait for a better entry point, considering its premium valuation and the challenges it is facing in the offshore wind market. 

However, those who have already invested in this Zacks Rank #3 (Hold) company may continue to do so as its upbeat estimates, solid share price returns year to date, as well as upward revision in earnings estimates offer solid prospects.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

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

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