1. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 92
Cramer thinks that GE Vernova Inc. (NYSE:GEV) will report solid figures in the upcoming quarter. However, he expressed worry that there is a chance that the stock might sell off on good news.
“GE Vernova’s about to report and my problem is that GE Vernova may be one of the situations where it sells off on good news, and I think you are going to get good news because I think the company’s doing incredibly well as Scott Strazik’s doing a terrific job. But remember, this is like one of those companies that is a data center magnet. They have nuclear power… Let’s say just small nuclear reactors, but that won’t be online till 2030. But be aware that they are the way that people are playing the power to the data center.”
GE Vernova (NYSE:GEV) is a prominent player in the energy sector, specializing in a wide range of products and services related to electricity generation, transfer, orchestration, conversion, and storage. The company is set to report its third-quarter earnings result on October 23.
On October 21, Deutsche Bank analyst Nicole DeBlase initiated coverage of the stock with a Buy rating and a $354 price target. The analyst mentioned in a research note that the firm recognizes GE Vernova as a focused entity in power generating capacity, emphasizing that current prospects for power investment have not been this favorable in decades. Projections indicate a remarkable annual growth rate of 63% in adjusted EBITDA through 2027 for the company.
Scott Strazik, the CEO of GE Vernova (NYSE:GEV) highlighted the evolving landscape of the nuclear power industry during his recent appearance at WSJ’s Journal House. He expressed confidence that significant additions to nuclear capacity will commence in the early 2030s, with expectations of “gigawatts upon gigawatts” being added annually. Strazik noted that while the current decade is crucial for validating nuclear technology and achieving operational milestones for initial projects, the 2030s are expected to be transformative for the sector.
Strazik also addressed the company’s offshore wind initiatives, acknowledging the challenges faced during the past summer. He emphasized the long-term significance of offshore wind in the energy transition, aligning its importance with that of small modular reactors and carbon capture technologies. Although recent developments in offshore wind have been tough, the CEO remains optimistic about its role in meeting future energy demands.
While we acknowledge the potential of GE Vernova Inc. (NYSE:GEV) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GEV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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