GE Vernova
GE Vernova
GEV
$11.02
3.47%
81%
IBD Stock Analysis
- Rebounding from 50-day line, trying to retake 21-day line
- It’s a buying opportunity for the big 2024 winner, but be careful
- GEV could be working on a new base
Industry Group Ranking
Emerging Pattern
Pullback
* Not real-time data. All data shown was captured at
10:47AM EST on
12/19/2024.
GE Vernova (GEV) is Thursday’s IBD Stock Of The Day as the S&P 500 component rebounded off a key level, offering investors a buy opportunity.
Last week, GEV stock received several price target hikes after GE Vernova, announced a $1 annual dividend and a $6 billion share buyback program at its Dec. 10 investor day event. It’s part of its strategy to return at least a third of free cash flow to shareholders.
The company also revised 2025 revenue guidance, expecting $36 billion to $37 billion, narrowed from its previous $35 billion to $37 billion range. GEV also forecasts high-single digit revenue growth in 2028, up from its previous mid-single digit growth projections.
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Free cash projections for 2025 are now $2 billion to $2.5 billion compared to GE Vernova’s earlier $1.2 billion to $1.8 billion view.
‘Top Pick’ Designation
Following the investor day, Jefferies analyst Julien Dumoulin-Smith raised the firm’s price target on GE Vernova to 391 from 348, maintaining a buy rating. Wells Fargo also raised its price target on GEV to 411 from 385.
William Blair analyst Jed Dorsheimer last week even proclaimed that GE Vernova was a “top pick” for 2025, with natural gas set to play an important role as technology companies pour resources into artificial intelligence and the data centers needed to train the programs.
The analyst believes natural gas will be the “workhorse for near- and medium-term electricity load growth for the AI data-center build out” in 2025. Dorsheimer added that GE Vernova, which produces the turbines to drive natural gas-fired generators, is the “largest beneficiary of shift back to natural gas.”
Meanwhile, GE Vernova Chief Executive Scott Strazik told Bloomberg last week that Big Tech companies are reserving gas turbines, for 5-gigawatt data center campuses. In the last 30 days alone, GE Vernova has signed 9 gigawatts of reservations for gas turbines from customers including data center developers, Strazik told Bloomberg.
S&P 500: GE Vernova Performance
GE Vernova popped 3.5% to 328.10 during market trade on Thursday, rebounding from its 50-day moving average after slipping 3.4% in Wednesday’s market sell-off. The S&P 500 stock appears to be trying to get back above its 21-day exponential moving average.
Investors could use the bounce off the 50-day line as an entry, perhaps just above the 21-day line but should move forward with caution in the current market environment.
GEV stock hit an all-time high on Nov. 21, of 357.09, according to MarketSurge chart analysis. The stock broke out of a seven-week base in mid-August. Shares are up more than 80% from that breakout. GEV shares have been one of the top performers in the S&P 500 this year.
Meanwhile, the 56 stocks in the IBD tracked Energy-Alternative/Other industry group have collectively gained more than 35% in 2024.
GEV stock has been consolidating for a few weeks, with a possible flat base at the end of next week.
In October, GEV reported worse-than-expected third-quarter profit as it continued to see “incremental contract losses” from its offshore wind business.
GE Vernova emerged from General Electric’s big, long-term breakup earlier this year, with spinouts of GE Aerospace (GE) and GE HealthCare Technologies (GEHC). GE Aerospace kept the GE ticker symbol.
Before the spinouts, the former General Electric shed a number of assets and operations over a series of years, from lighting to locomotives. In November 2017, GE began signaling the breakup process amid financial troubles.
GE Vernova stock has an 85 Composite Rating out of a best-possible 99. The S&P 500 component also has a 97 Relative Strength Rating and a 61 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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