5. Ge Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Investors: 92
Jim Cramer reported that Barclays has initiated coverage of Ge Vernova Inc. (NYSE:GEV), an energy company, with a buy rating. Ge Vernova Inc. (NYSE:GEV) recently jumped nearly 14%, partly due to the presidential debate being viewed as favorable for renewable energy. Ge Vernova Inc. (NYSE:GEV), known for its connections to Kamala Harris, is seen as a strong investment because it provides wind and natural gas energy. Ge Vernova Inc. (NYSE:GEV)’s exposure to natural gas is particularly valuable as data centers require more power from this source.
“Barclays started energy company GE Vernova with a buy rating. The stock is coming off a nearly 14% surge last week, with some of the move being tied to the presidential debate being seen as positive for renewable energy. GE Vernova is the Kamala Harris stock and that’s the main reason why you would buy a windmill and natural gas company that really has under-appreciated exposure to natural gas. Data centers need more power from nat gas.”
Ge Vernova Inc. (NYSE:GEV) offers an attractive investment opportunity due to its strong position in the global energy transition, focus on renewable energy, and improved financial performance. In Q2 2024, Ge Vernova Inc. (NYSE:GEV) achieved profitability with a net income of $1.28 billion, a significant turnaround from a $149 million loss the previous year. Revenue grew 1% year-over-year to $8.2 billion, driven by strength in its Electrification and Power segments.
Ge Vernova Inc. (NYSE:GEV) has also raised its 2024 financial guidance, expecting revenue between $34-35 billion and EBITDA margins of 5% to 7%. Ge Vernova Inc. (NYSE:GEV)’s leadership in clean energy is highlighted by strong demand for its grid and electrification equipment. Its backlog is projected to triple by year-end, and the company is expanding capacity for heavy gas turbines to meet rising global needs.
Analysts are optimistic about Ge Vernova Inc. (NYSE:GEV)’s progress, with price target upgrades from firms like HSBC and Evercore ISI, reflecting confidence in its role in the clean energy sector. Overall, Ge Vernova Inc. (NYSE:GEV)’s focus on decarbonization, improved profitability, and strategic investments in energy infrastructure supports a strong bullish outlook.
Carillon Eagle Mid Cap Growth Fund 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.”
