The most recent trading session ended with GE Vernova (GEV) standing at $472.98, reflecting a +0.38% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 0.32%.
The the stock of the energy business spun off from General Electric has risen by 23.25% in the past month, leading the Oils-Energy sector's gain of 2.31% and the S&P 500's gain of 6.43%.
The upcoming earnings release of GE Vernova will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.57, reflecting a 121.13% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $8.76 billion, up 6.79% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.16 per share and a revenue of $37.17 billion, indicating changes of +28.32% and +6.39%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for GE Vernova. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.26% lower. Currently, GE Vernova is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, GE Vernova is presently being traded at a Forward P/E ratio of 65.84. This indicates a premium in contrast to its industry's Forward P/E of 19.38.
It's also important to note that GEV currently trades at a PEG ratio of 3.66. 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. Alternative Energy - Other stocks are, on average, holding a PEG ratio of 2.58 based on yesterday's closing prices.
The Alternative Energy - Other industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 143, positioning it in the bottom 43% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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