GE Vernova Inc. Faces Recent Price Decline Amid Optimistic Outlook

GE Vernova Inc. (GEV), an energy company with a market capitalization of $74.5 billion, offers a variety of products and services related to electricity generation, transfer, orchestration, conversion, and storage. Based in Cambridge, Massachusetts, GEV operates through three segments: Power, Wind, and Electrification.

Fitting the “large-cap stocks” category, GEV has a market cap that exceeds $10 billion. The company’s extensive portfolio includes gas and steam power, wind energy, nuclear technology, and grid solutions, positioning it favorably in both traditional and emerging energy markets. With General Electric’s well-established legacy, GEV enjoys a solid global presence, engineering expertise, and a diverse customer base.

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Despite these strengths, GEV has experienced a 36.5% drop from its 52-week high of $447.50, reached on January 23. Additionally, the company has fallen 17.3% in the last three months, underperforming the Nasdaq Composite’s ($NASX) 13% decline during the same period.

Year-to-date, GEV shares are down 13.6%, slightly more than the NASX’s 9.7% decline. However, over the past six months, GEV has seen a significant rebound of 35.9%, outperforming the marginal growth in NASX.

Confirming its recent bearish trend, GEV has consistently traded below its 100-day and 50-day moving averages since late February.

After releasing its Q4 earnings on January 22, GEV shares rose 2.7%, despite reporting weaker-than-expected earnings of $1.73 per share and revenues of $10.6 billion. On a positive note, revenues increased by 5.1% year-over-year, and net income surged 140.3%. While strong performances from its Power and Electrification segments supported these results, a decline in wind segment orders occurred due to weaker demand for onshore wind equipment. Notably, margin expansion across all segments bolstered the company’s financial position.

Looking ahead, GEV has reaffirmed its guidance for 2025, projecting full-year revenue between $36 billion and $37 billion. The company also anticipates maintaining high-single-digit adjusted EBITDA margins, contributing to a more positive investor outlook.

In comparison, GEV has outperformed Constellation Energy Corporation (CEG) with its 11.4% gain over the past six months but has not fared as well as CEG’s 6.8% decline for the year.

Although GEV has faced recent challenges, analysts remain optimistic regarding its future. The stock holds a consensus rating of “Strong Buy” from the 27 analysts covering it, with a mean price target of $414.12, indicating a potential upside of 45.7% from current levels.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.