Not many newly public companies start out with a $33.8 billion annual run rate. GE Vernova, the General Electric spinoff, launched in March and it reported about that revenue this past year. And it's thriving. On Thursday the Relative Strength (RS) Rating for GE Vernova stock climbed to 83, up from 79, passing an important milestone.
GE Vernova Stock Rising After Separation From GE
GEV stock traded at 131.25 at the end of March after its spinoff from the company that is now GE Aerospace, which kept the GE ticker. Thursday afternoon it traded above 176, up more than 6% for the day, and 34% higher in just over four months.
The RS Rating upgrade is notable because market research shows that the best stocks typically have an 80 or better RS Rating as they begin their biggest climbs. GE Vernova just came to the starting line for a possible big run.
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GE Vernova is a leading producer of energy industry products. Its businesses range from traditional hydro power gear to solar, wind and nuclear.
Among its other ratings GE Vernova has a 71 Earnings Per Share Rating, meaning it tops 71% of all stock for earnings growth, and a 76 Composite Rating.
Despite strong revenue and earnings growth, Wall Street will need more convincing before it buys in heavily. GEV stock has a D- Accumulation/Distribution Rating on an A+ to E scale. The D- rating shows that institutional investors like ETFs and university funds are selling more shares than buying.
GE Vernova stock is building a consolidation with a 185.50 buy point. See if the stock can break out in volume at least 40% higher than normal. GEV stock rose sharply Thursday afternoon amid the renewed stock rally.
Massive Earnings Reversal From Last Year
In its latest quarterly report, GE Vernova recorded $4.76 EPS, reversing from a 55-cent loss the same quarter a year ago. Its sales edged up 1% to $8.204 billion last quarter. The prior three periods it reported EPS growth of 102%, 102% and 59%. Sales climbed 23%, 23% and 6% during that time.
GE Vernova earns the No. 6 rank among its peers in the Energy-Alternative/Other industry group. Kenon Holdings and Clearway Energy are among the top 5 highly rated stocks in the group.
IBD's proprietary RS Rating measures market leadership by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
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