10 Best Green Stocks To Buy According to Short Sellers

4. GE Vernova (NYSE:GEV)

Short Interest as % of Shares Outstanding: 1.41%  

Number of Hedge Fund Investors in Q2 2024: 92  

GE Vernova (NYSE:GEV) has a legacy of over 130 years in manufacturing electrical equipment, natural gas turbines, wind turbines, hydropower turbines, and high-voltage electrical transmission products. The company is a key player in the green energy sector and its technology is utilized in approximately 55,000 wind turbines and 7,000 gas turbines across more than 100 countries which generate around 25% of the world’s electricity.

GE Vernova (NYSE:GEV) is strategically positioned to benefit from several global trends, including rising demand for electricity, natural gas, and green energy solutions. The International Energy Agency (IEA) projects global electricity demand will increase by 4% in 2024 and 2025, up from 2.5% in 2023. This growth is driven by the electrification of transportation, such as the adoption of electric vehicles, and the need for power-intensive technologies like AI systems.

In Q2, GE Vernova reported a net income of $1.3 billion in Q2, a significant turnaround from a $100 million loss in the same period the previous year. This $1.4 billion increase highlights the company’s improving profitability. The net income margin for GE Vernova (NYSE:GEV) also grew by 17.4% year-over-year, reflecting enhanced operational efficiency. Notably, the company’s Power unit, which includes gas and steam turbines, saw a 30% increase in orders compared to Q2 2023, and the backlog for its electrification business expanded by 35% year-over-year.

The Business Research Company forecasts that the electrical equipment market is expected to grow at a CAGR of 6.1% from 2024 to 2028. Additionally, the IEA forecasts that installed wind power capacity will double between 2023 and 2029 which will boost demand for GE Vernova’s (NYSE:GEV) wind turbines and related products. As of the second quarter, the stock is held by 92 hedge funds, with a total investment of $5.70 billion.