GE Vernova (GEV – Free Report) closed the most recent trading day at $300.24, moving +0.52% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.91% for the day. Elsewhere, the Dow saw a downswing of 1.5%, while the tech-heavy Nasdaq depreciated by 1.96%.
The the energy business spun off from General Electric’s stock has dropped by 19.2% in the past month, falling short of the Oils-Energy sector’s loss of 4.23% and the S&P 500’s loss of 7.38%.
The investment community will be closely monitoring the performance of GE Vernova in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.45, marking a 209.76% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $7.57 billion, reflecting a 4.28% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.77 per share and revenue of $36.83 billion, which would represent changes of +21.33% and +5.41%, respectively, from the prior year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for GE Vernova. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.63% higher. GE Vernova presently features a Zacks Rank of #3 (Hold).
In terms of valuation, GE Vernova is currently trading at a Forward P/E ratio of 44.13. Its industry sports an average Forward P/E of 18.48, so one might conclude that GE Vernova is trading at a premium comparatively.
It is also worth noting that GEV currently has a PEG ratio of 2.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Alternative Energy – Other industry had an average PEG ratio of 2.15 as trading concluded yesterday.
The Alternative Energy – Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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