Valued at a market cap of $101.4 billion, GE Vernova Inc. (GEV) is a global energy company focused on delivering innovative solutions for the generation, transfer, conversion, and storage of electricity. It operates through three main segments: Power, Wind, and Electrification, each providing cutting-edge technologies and services.
Shares of the sustainable energy giant have significantly outperformed the broader market over the past six months. GEV has surged 124.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 15.9%. On a YTD basis, shares of GEV are up 12.1%, compared to SPX’s 3.2% gain.
Focusing more closely, the Cambridge, Massachusetts-based company has outpaced the Industrial Select Sector SPDR Fund’s (XLI) 12.5% return over the past six months and a 4.2% YTD gain.
Despite reporting weaker-than-expected Q4 EPS of $1.73 and revenue of $10.6 billion, GE Vernova's stock rose 2.7% on Jan. 22. This increase was attributed to significant progress in the Power and Electrification segments, which saw substantial margin expansions and a strengthened equipment backlog, bolstering investor confidence. The Wind segment also showed signs of improvement, driven by Onshore Wind's best quarter in three years and reduced Offshore Wind losses. GE Vernova reaffirmed its 2025 revenue guidance of $36 billion to $37 billion and projected high-single-digit adjusted EBITDA margins.
For the current fiscal year, ending in December 2025, analysts expect GEV’s EPS to grow 174.6% year-over-year to $6.59. The company's earnings surprise history is mixed. It topped the consensus estimates in two of the last four quarters while missing on two other occasions.
Among the 25 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 18 “Strong Buy” ratings, two “Moderate Buys,” and five “Holds.”
This configuration is more bullish than three months ago, with 16 “Strong Buy” ratings on the stock.
On Dec. 12, 2024, JPMorgan analyst Mark Strouse raised GEV's price target to $367, maintaining an “Overweight” rating. This adjustment followed the company's fiscal 2025 guidance, which was slightly below consensus expectations due to the Wind segment and the announcement of a $6 billion share repurchase authorization and a modest dividend.
As of writing, GEV is trading below the mean price target of $416.35. The Street-high price target of $500 implies a potential upside of 33.1% from the current price levels.
