10 Most Promising Energy Stocks According to Hedge Funds

3. GE Vernova Inc. (NYSE:GEV)

Number of Hedge Fund Holders: 92

GE Vernova Inc. (NYSE:GEV), a newly formed independent company spun off from General Electric, is a leading player in the electric power industry. The company specializes in manufacturing energy equipment and providing support services, with a strong emphasis on sustainable energy solutions. GE Vernova aims to achieve carbon neutrality in its operations by 2030.

GE Vernova Inc. (NYSE:GEV) contributes to about 25% of the world’s electricity generation, supported by its extensive technology base, which includes roughly 55,000 wind turbines and 7,000 gas turbines. This positions the company as a key player in the energy transition.

Since going public, the company has posted strong financial results, reporting $8.2 billion in revenue for Q2 2024 and total orders of $11.8 billion, along with a decent increase in its cash balance since the spinoff. These solid results and market position have led analysts to be optimistic about the stock. Currently, analysts have assigned GE Vernova Inc. (NYSE:GEV) an average rating of “Strong Buy” and a 12-month average price target of $285.3, suggesting a potential upside of over 7% from the current price levels.

Here’s what Carillon Tower Advisers said about GE Vernova Inc. (NYSE:GEV) in its Q2 2024 investor letter:

“GE Vernova is a global electric power company that was recently spun out of a much larger industrial conglomerate. The company’s shares performed well in their first quarter as a standalone compa- ny, primarily as a result of the increasing outlook for power demand growth, both domestically and abroad. We believe GE Vernova is well positioned to capitalize on this growing trend across its various products and services, but most notably within its large-scale gas turbine equipment and related services, as well as in its high-volt- age electrical transmission products.”