GE Vernova Signs a New Partnership Deal: Buy, Hold or Sell the Stock?

GE Vernova Inc. GEV recently revealed that it has signed a new strategic partnership deal with Amazon Web Services (“AWS”) to support the latter’s data center expansion while addressing global energy demand, grid security and decarbonization. Under this agreement, GE Vernova will provide electrification solutions, including substation connectivity for AWS data centers, renewable energy collaboration and power generation equipment.This partnership strengthens GE Vernova’s market position by expanding its role in sustainable energy solutions, making it a key player in the digital and energy transition. The aforementioned collaboration solidifies GE Vernova’s growth potential in the evolving energy landscape, which may encourage investors interested in energy stocks to add GEV to their portfolio.  However, before making any hasty decision, let’s delve into the stock’s performance over the past year, growth prospects as well as risks (if any) to investing in the same. This way, an investor can make a prudent and informed decision.GEV Stock Outperforms Industry, Sector & S&P 500Shares of GE Vernova have surged an impressive 92.9% in the past year, outperforming the Zacks Alternative-Energy industry’s growth of 41.8% and the broader Zacks Oils-Energy sector’s decline of 2.6%. It has also outpaced the S&P 500’s rise of 12.4%.Image Source: Zacks Investment ResearchA similar stellar performance has been delivered by other industry players, such as Talen Energy Corporation TLN, Constellation Energy Corporation CEG and Bloom Energy BE , whose shares have surged 119.6%, 95.9% and 20.1%, respectively, in the past year.What’s Pushing GEV Stock Up?As a renowned renewable energy equipment and services provider, GEV continues to expand its footprint in the global clean energy market through multiple partnerships, robust investment in renewable energy projects and enhancement of its existing business.  Impressively, in February 2025, GE Vernova announced that it will provide advanced solar technology for one of the world's largest self-consumption Solar Power Plant (“SPP”) projects, with a total capacity of 1.2 gigawatts (GW). The same month, its nuclear business, GE Hitachi Nuclear Energy (“GEH”), signed MoUs with UK nuclear energy firms, Boccard and Cavendish Nuclear, to advance the development of BWRX-300 Small Modular Reactors (SMRs).In January 2025, GE Vernova committed to invest $20 million in developing next-generation repair technologies for its HA gas turbines at its Singapore-based Advanced Manufacturing Repair Technology Center. Earlier in December 2024, the company secured the Ostwind 4 project, which involves the designing and commissioning of a 2-GW High-Voltage Direct Current electric transmission system in the German Baltic Sea, connecting offshore wind to the grid.These announcements show GE Vernova's continuing efforts to expand its footprint in the clean energy industry as a major provider of sustainable energy. This must have boosted investors’ confidence in this stock, as evident in the aforementioned share price hike.Can GEV Stock Continue With Its Winning Streak?Global electricity consumption is expected to rise at its fastest pace in recent years, growing close to 4% annually through 2027 (as per the latest report published by the International Energy Agency in February 2025). Such impressive growth projection should bode well for GE Vernova’s grid solution and power conversion revenues in the long run. To this end, it is imperative to mention that in March 2025, GE Vernova announced that its industry-leading H-Class gas turbine technology has amassed more than 3 million commercial operating hours across 116 units globally. With more HA turbines expected to come online in the coming days (to support rising electricity consumption), GEV’s HA fleet should enable grid operators to dispatch power quickly and thereby offer a great complement to intermittent renewable sources. This should further enhance GEV’s prowess in the renewable electric generation industry and thereby boost its operating results.In line with this, the Zacks Consensus Estimate for GEV’s long-term (three-to-five years) earnings growth is pegged at a solid 18%. Let’s take a quick look at its near-term estimates to get a clearer picture.Estimates for GEVThe Zacks Consensus Estimate for 2025 and 2026 sales implies an improvement of 5.4% and 9.2%, respectively, year over year.  A similar improvement can be witnessed in its annual earnings estimates. Also, the Zacks Consensus Estimate for 2025 and 2026 earnings per share has moved north 1.8% and 11.4%, respectively, over the past 60 days. The upward revision in earnings estimates indicates analysts’ gaining confidence in the stock.Image Source: Zacks Investment ResearchImage Source: Zacks Investment ResearchRisks to Consider Before Choosing GEVDespite the aforementioned growth opportunities, GEV faces certain challenges that one should consider before investing in this stock.  To this end, it is imperative to mention that the offshore wind industry has been facing increased challenges lately in the form of increased material costs and persistent supply-chain challenges. This, in turn, has led to several project cancellations in recent times. As a manufacturer of wind turbines, GEV has been experiencing pressure in its offshore wind business due to product and project costs. Changes in execution timelines or other adverse developments might affect GEV’s cash collection timelines and contract profitability, resulting in losses beyond current expectations.GEV Stock Trading at a PremiumIn terms of valuation, GEV’s forward 12-month price-to-earnings (P/E) is 36.40X, a premium to its peer group’s average of 16.76X. This suggests that investors will be paying a higher price than the company's expected earnings growth compared to its peers.Image Source: Zacks Investment ResearchFinal ThoughtsTo conclude, investors interested in GEV Vernova should wait for a better entry point, considering its premium valuation and the challenges it is facing in the wind market. However, those who have already invested in this Zacks Rank #3 (Hold) company may continue to do so as its upbeat sales estimates, solid share price returns over the past year and upward revision in earnings estimates offer solid prospects.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Constellation Energy Corporation (CEG): Free Stock Analysis Report Talen Energy Corporation (TLN): Free Stock Analysis Report Bloom Energy Corporation (BE): Free Stock Analysis Report GE Vernova Inc. (GEV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks