Quality can be boring but when all else fails...it comes back while the junk may or may not.
In late pre-market GEV is up $23.02 (+7.06%) at $349.09. This follows yesterday's $12.99 (+4.15%) move higher.
From Reuters, April 23:
GE Vernova (GEV.N) reported first-quarter revenue on Wednesday that beat Wall Street estimates on the back of strong performance at its power and electrification units, sending its shares up more than 8% in premarket trading.The results come at a time when the power industry is bracing for the impact of the Trump administration's sweeping tariffs and policies, which have disrupted supply chains, raised costs and threatened the future of offshore wind projects.The power equipment maker reaffirmed its annual revenue forecast of $36 billion to $37 billion, but added the forecast includes a cost impact of about $300 million to $400 million due to tariffs.
GE Vernova, which became independent last year after a three-way split of General Electric (GE.N), reported total orders of $10.2 billion in the first quarter, up roughly 8% from last year.Core profit at the electrification segment more than tripled to $214 million in the first quarter, while the power segment, GE Vernova's largest unit, reported core profit of $508 million compared with $345 million a year earlier....
The price action over the year we've been touting it (excluding today's move, whatever it will be):
Up 140.61%.
May 2024 - Goldman Sachs' Picks For Data Center Electricity Demand Growth
October 7, 2024 - "A GE spinoff's stock is surging as it positions itself as the 'supermarket' for AI energy demand" (GEV)
October 23, 2024 - Power Generation—"GE Vernova Q3 Earnings: Strong Sales, Earnings Miss, Cash Flow Surge & More" (GEV)
GEV is the electric part of the old General Electric. They estimate their equipment is involved, one way or another, in 30% of the world's electricity production. The stock represents one of the class acts of infrastructure and has been popular of late, what with the A. and the I. and all that.
November 7 - "Trump’s Win Is Crushing Renewable-Energy Stocks. Why This One Is Gaining." (GEV)
November 12 - GE Vernova: No More Wind Business Until The Market Improves And/Or We Figure Out The Fraud At The Canadian Plant (GEV)
January 27, 2025 - "GE Vernova hit with downgrade by Guggenheim (GEV)":
And though it is based on valuation rather than corporate or macro events the downgrade is, unfortunately, from Guggenheim who have been very timely in their calls.
See for example December 5's "GE Vernova shares see 33% target hike from Guggenheim, Buy rating upheld"
In pre-market action the stock is down $57.49 (13.67%) to $363.00.
The other "quality" name we have been touting, electric infrastructure contractor Quanta Services is down $28.01 (7.82%) at $330.02.
It is days like today that are the reason we prefer quality over super-spec lottery tickets: the good ones come back (eventually) the rest may, or may not.
The small modular nuke wannabes OKLO; SMR and the quantum computing stocks, RGTI, QBTS etc. are among the lottery tickets that may or may not come back.
Quanta and GE Vernova will survive and thrive. Even without AI. The U.S. and the world need to string more powerlines and need more generating capacity that will come on line faster than nukes or a baby nukes....
February 12, 2025 - "Nation's Largest Grid To Fast-Track NatGas Power Plants To Fuel Next AI Trade" (GEV)
March 19, 2025 - "US, Vietnamese Firms Sign Billions in Energy, Mineral Deals" (GEV; KBR)
