Jim Cramer is Talking About These 12 Stocks

2. GE Vernova Inc. (NYSE:GEV)

Number of Hedge Fund Holders: 92

In April, General Electric spun off into three parts, which led to the formation of GE Vernova Inc. (NYSE:GEV). While Cramer was initially worried about the company, he recently mentioned that it “turned out to be an incredible mover.”

GE Vernova Inc. (NYSE:GEV) is an energy company focused on providing a wide range of products and services related to electricity generation, transfer, orchestration, conversion, and storage. It operates across the United States, Europe, Asia, the Americas, the Middle East, and Africa.

The company represents the consolidation of General Electric’s power, wind, and electrification sectors, which include gas turbine equipment, onshore and offshore wind turbines, and technologies for grid distribution and power conversion.

Recently, GE Vernova (NYSE:GEV) reaffirmed its financial outlook for 2024. It is now projecting revenue to trend toward the upper range of $34 to $35 billion. The adjusted EBITDA margin is expected to be between 5% and 7%, and the company anticipates free cash flow to fall between $1.3 billion and $1.7 billion.

The outlook is supported by expected growth in the Power and Electrification segments, both of which are expected to reach the higher end of their EBITDA margin guidance. For the third quarter, the company still expects solid year-over-year organic revenue growth.

GE Vernova (NYSE:GEV) has plans for the Power segment and seeks to expand capacity to deliver 70 to 80 heavy-duty gas turbine units annually starting in 2026. It is a significant increase from the current average of about 55 shipments each year.

Given the growing demand for grid equipment, the company forecasts that its Electrification equipment backlog will more than triple by the end of 2024, compared to the $6.4 billion backlog reported at the end of 2022.

Carillon Tower Advisers stated the following regarding GE Vernova Inc. (NYSE:GEV) in its Q2 2024 investor letter:

“GE Vernova Inc. (NYSE:GEV) 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 company, 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-voltage electrical transmission products.”