GE Vernova to Boost Germany's Wind Power: Should You Buy the Stock Now?

GE Vernova Inc.’s GEV Wind segment recently signed its 20th supply agreement with BBWind, a regional wind farm developer in Germany, thereby strengthening its foothold in the nation. The deal includes three 6 megawatt (MW)-164 meter (m) wind turbines for community wind projects in Heiden and Dorsten, totaling 18 MW. With a 70,000 sq. m manufacturing facility in Salzbergen, GEV is well-positioned to meet rising turbine needs as Germany accelerates toward 80% renewable energy by 2030. Given the country’s strong 2024 onshore wind installation of 3.2 GW, this agreement could attract investor interest in GEV stock.However, before making any hasty decision, let’s delve into the company’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 107.3% in the past year, outperforming the Zacks Alternative-Energy industry’s decline of 19.1% and the broader Zacks Oils-Energy sector’s return of 12%. It has also outpaced the S&P 500’s fall of 1.4% over the same period.Image Source: Zacks Investment ResearchA similar stellar performance has been delivered by other industry players, such as Talen Energy Corp. TLN and Bloom Energy BE, whose shares have surged 94.3% and 49.1%, respectively, in the past year.What’s Pushing GEV Stock Up?The global shift toward clean energy solutions continues to be a key growth catalyst for GEV, a renowned renewable energy equipment and services provider. To this end, it is imperative to mention that the recent developments announced by GE Vernova reflect its continuing efforts to expand GEV’s footprint in the clean energy industry as a major provider of sustainable energy. This, in turn, might have boosted investors’ confidence in this stock, as evident from the aforementioned share price hike. In March 2025, the company revealed that the Pulau Indah power plant, powered by GE Vernova 9HA.01 combined cycle equipment, has started operations in Selangor, Malaysia. This new 1,200 MW plant is projected to produce the equivalent electricity needed to power approximately 2.5 million homes in Malaysia.The same month, GEV entered into an agreement with RWE to provide 109 of its 2.8 MW–127m onshore wind turbines to power the Honey Mesquite wind farm in Glasscock County, TN, and repower the Forest Creek Wind Farm near Big Spring, TX. At the end of March, GE Vernova announced its next generation of mobile aero-derivative gas turbines, “power plants on wheels,” which can deliver reliable and efficient power anywhere, whether on or off the grid. The new TM2500 Dry Low Emissions (DLE) is GE Vernova’s waterless, mobile 34MW power plant that offers high-efficiency performance, up to 39% efficiency, with reduced NOx emissions and waste.More recently, GE Vernova’s Wind segment signed an agreement this month to provide Forestalia with eight of its 6.1 MW-158m workhorse wind turbines to power a 49-MW wind project in Aragón, Spain. Will GEV Stock Continue Its Growth?With rising renewable energy adoption worldwide, GEV expects gas power generation to continue to grow significantly in the near term. This should continue to boost demand for its gas equipment and services, thereby bolstering the revenue generation prospects for its Gas Power business.On the other hand, GEV’s wind business stands to benefit from rising global renewable energy investments. By streamlining its onshore turbine portfolio, enhancing fleet availability through targeted repairs, and focusing operations in strategically aligned regions, GEV is optimizing efficiency and market fit. This should strengthen its competitive position and unlock sustainable long-term growth in the evolving wind energy landscape.In line with this, the Zacks Consensus Estimate for GEV’s long-term (three-to-five years) earnings growth rate is pegged at a solid 18%. In fact, the hefty investment trend in renewable energy visible worldwide has also been bolstering the growth prospects of other renewable energy stocks like TLN and BE.  Notably, the long-term earnings growth rate for TLN is 5.4%, while that for BE is 41.4%.  Now, let’s take a quick look at GEV’s near-term estimates to see if they also have a similar growth story.Estimates for GEVThe Zacks Consensus Estimate for 2025 and 2026 sales implies an improvement of 5% and 9.5%, respectively, year over year. Moreover, the Zacks Consensus Estimate for GEV’s first-quarter and full-year 2025 earnings per share has moved north 7.5% and 1%, respectively, over the past 60 days. The upward revision in earnings estimates indicates analysts’ increasing 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 the stock.  To this end, it is imperative to mention that the offshore wind industry is still facing increased challenges 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 thus been experiencing pressure in its offshore wind business in the form of product and project costs as well as execution timelines. Changes in execution timelines or other adverse developments might have an impact on 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 37.47X, a premium to its peer group’s average of 14X. 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 offshore 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 near-term earnings estimates offer solid growth prospects.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 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