Valued at a market cap of $74.5 billion, GE Vernova Inc. (GEV) is an energy company that provides various products and services that generate, transfer, orchestrate, convert, and store electricity. The Cambridge, Massachusetts-based company operates through three segments: Power; Wind; and Electrification.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and GEV fits the label perfectly, with its market cap exceeding this threshold. With a diverse portfolio spanning gas and steam power, wind energy, nuclear technology, and grid solutions, the company is well-positioned to serve both traditional and emerging energy markets. Backed by General Electric’s legacy, it benefits from a strong global presence, engineering expertise, and a vast customer base.
Despite its notable strength, this electric services provider has slipped 36.5% from its 52-week high of $447.50, reached on Jan. 23. Moreover, it has declined 17.3% over the past three months, lagging behind the broader Nasdaq Composite’s ($NASX) 13% downtick over the same time frame.
On a YTD basis, shares of GEV are down 13.6%, underperforming NASX’s 9.7% decline over the same time frame. However, GE Vernova has rallied 35.9% over the past six months, considerably outpacing NASX’s marginal rise.
To confirm its recent bearish price trend, GEV has been trading below its 100-day and 50-day moving averages since late February.
On Jan. 22, shares of GEV closed up 2.7% after its Q4 earnings release, despite delivering weaker-than-expected Q4 earnings of $1.73 per share and revenues of $10.6 billion. However, on a positive note, revenue increased by 5.1% compared to the previous year, while net income surged by an impressive 140.3% year-over-year. Robust performances from its power and electrification segments aided the results but were partially offset by a decline in wind segment orders, driven by weaker demand for onshore wind equipment. Additionally, margin expansion across all segments further strengthened the company’s financial position.
GE Vernova reaffirmed its 2025 guidance. The company projects full-year revenue between $36 billion and $37 billion, with expectations of maintaining high-single-digit adjusted EBITDA margins. This optimistic outlook might have further bolstered investor confidence.
GEV has outpaced its rival, Constellation Energy Corporation’s (CEG) 11.4% gain over the past six months but has lagged behind CEG’s 6.8% decline on a YTD basis.
Despite GEV’s recent underperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 27 analysts covering it, and the mean price target of $414.12 suggests a massive 45.7% premium to its current levels.
