GEV Rises 14.8% in 3 Months: Should You Buy the Stock Now or Wait?

GE Vernova Inc.’s GEV shares have risen 14.8% in the past three months, outperforming its Zacks Alternate Energy – Other industry’s growth of 4.1%. One key benefit of the rapidly expanding construction of Artificial Intelligence data centers is their massive electricity demand, which creates strong opportunities for GE Vernova to supply power through its turbines and grid equipment.

Image Source: Zacks Investment Research

Other alternative energy stocks, such as Crescent Energy Company CRGY and Bloom Energy BE, have also outperformed the industry during the past three months. Shares of Crescent Energy and Bloom Energy have risen 22.5% and 49.4%, respectively, over the said period.

Considering GE Vernova’s outperformance, investors might be left wondering if this is a good time to add the stock to their portfolio. Let's examine the factors that contributed to the share price gain and assess the stock's investment prospects to make an informed decision

Factors in Favor of GEV

GE Vernova is working to improve profitability in its wind segment by implementing cost controls, optimizing its project portfolio and streamlining operations, which help offset past margin pressures in the wind industry. At the same time, its gas power and power services businesses continue to deliver solid performance, supported by strong demand for gas turbines, maintenance services and upgrades from utilities seeking reliable power generation.

The rapid expansion of data centers and the accelerating adoption of Artificial Intelligence are significantly increasing electricity consumption, creating broader growth opportunities for GE Vernova’s gas turbines, grid solutions and related power infrastructure as countries and companies invest in strengthening their energy systems to meet rising power needs.

In March 2026, GE Vernova secured an IVPC Group contract for a more than 100-megawatt (MW) Fortore Wind Farm in Italy. The company will provide 17 of its advanced onshore wind turbines and deliver customized operations and maintenance support, creating both upfront project revenues and recurring service income.

GE Vernova is also expanding its manufacturing capacity in Italy to strengthen its ability to meet rising global demand for grid infrastructure and electrification technologies. The expansion of its facility in Sesto San Giovanni aims to increase production capacity for essential components used in power and generator transformers.

GE Vernova is likely to benefit from the advancement of the BWRX-300 small modular reactor project in Poland through stronger long-term growth opportunities in the nuclear power market. The agreement with Orlen Synthos Green Energy to develop a detailed reactor design for Poland establishes a reference model that can be used for multiple SMR projects across the country, potentially leading to the deployment of a fleet of reactors based on GE Vernova’s technology.

GEV Stock’s Earnings Estimates

The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an increase of 6.89% in the past 60 days. GEV’s long-term (three to five years) earnings growth rate is 18%.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Crescent Energy’s 2026 EPS indicates an increase of 4.23% in the past 60 days. The bottom-line estimate for Bloom Energy’s 2026 EPS implies an increase of 48.39% in the past 60 days. BE’s long-term earnings growth rate is 25%.

Challenges Faced by GEV

The company relies on complex global supply networks for components used in its gas turbines, wind turbines and grid infrastructure. It purchases nearly $20 billion in materials and components sourced from more than 100 countries. Disruptions in the availability of raw materials, along with logistical delays, have affected and may adversely impact GE Vernova’s production timelines and raise its input costs, hurting its bottom line.

Throughout 2025, the United States and other countries imposed global tariffs. These tariffs have led to additional costs, and any future tariffs are likely to do the same. The total impact of global tariffs in the full-year 2025 was nearly $250 million, after contractual protections and mitigation measures.

GEV’s Earnings Surprise History

The company beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 107.26%.

Image Source: Zacks Investment Research

GEV’s Return on Equity Higher Than Industry

The company’s trailing 12-month return on equity of 46.91% is higher than the industry average of 7.04%. Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.

Image Source: Zacks Investment Research

GEV Stock Trades at a Premium

GE Vernova is currently trading at 53.85X, a premium compared to its industry’s 22.66X on a forward 12-month P/E basis.

Image Source: Zacks Investment Research

What Should Investors do Now?

GE Vernova is improving wind segment profitability through cost discipline while its gas power and services businesses remain strong amid rising demand for reliable electricity. Growing power consumption from AI data centers, new wind projects in Italy, expanded grid equipment manufacturing and progress on the BWRX-300 SMR project in Poland are creating broader long-term growth opportunities for the company across renewables, grid infrastructure and nuclear energy.

Given its current premium valuation, new investors may prefer to wait for a better entry point. Those who already have this stock may stay invested, considering its earnings growth and strong ROE. GEV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.

See

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Bloom Energy Corporation (BE): Free Stock Analysis Report

Crescent Energy Company (CRGY): Free Stock Analysis Report

GE Vernova Inc. (GEV): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research