15 Best Stocks to Buy During Recession

4. GE Vernova Inc. (NYSE:GEV)

Number of Hedge Fund Holders: 111

GE Vernova Inc. (NYSE:GEV) is an energy company that is engaged in providing products and services that generate, transfer, orchestrate, convert, and store electricity. Analyst Marc Bianchi from TD Cowen maintained a “Buy” rating on the company’s stock. This rating stems from the company’s strong performance and strategic positioning in the broader power and electrification sectors. As per the analyst, GE Vernova Inc. (NYSE:GEV) has exhibited strong execution, as demonstrated by the significant power orders, mainly in gas turbines, that surpassed expectations.

Notably, in Q1 2025, GE Vernova Inc. (NYSE:GEV)’s orders of $10.2 billion rose 8% organically because of services growth and equipment growth in Power. Given a significant backlog and slot reservations, GE Vernova Inc. (NYSE:GEV) is well-placed to capitalize on future demand, mainly in the US market, where a large portion of its orders are concentrated, says the analyst. In Q1 2025, the company signed 7 gigawatts of gas turbine orders, increasing its Gas Power equipment backlog to 29 gigawatts. The analyst also opines that despite challenges like tariff costs and inflation, the company continues to possess a stable growth trajectory. The company has reaffirmed its 2025 financial guidance. It expects revenue of $36 billion – $37 billion, high-single digits adjusted EBITDA margin, and FCF of $2.0 billion – $2.5 billion.

Artisan Partners, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Notable adds in the quarter included GE Vernova Inc. (NYSE:GEV) and Oracle. GE Vernova is the power, wind and electrification spinoff from the former GE conglomerate. The company benefits from large global market shares across its businesses, high barriers to entry and a substantial installed base that generates multiyear service revenue streams. Now that the company is standing on its own, we believe it is in the early innings of a turnaround story while benefiting from an attractive underlying demand environment. As the world continues to decarbonize, the resulting need for power, wind and electrification equipment is poised to drive attractive growth over the coming years. Our work on AI data center growth and electrification implications strengthened our conviction in GE Vernova in the quarter, particularly its natural gas business, which we believe will need to act as a bridge fuel as technology companies try to balance AI data center growth with decarbonization targets.”