Key Takeaways GEV shares gained 13.2% in three months, beating the industry as gas turbines meet rising power demand.GE Vernova is boosting wind profitability and securing major gas, wind and grid contracts.GEV's ROE of 17.07% tops the industry even as the stock trades at a premium.GE Vernova Inc.’s (GEV) shares have risen 13.2% over the past three months, outperforming its Zacks Alternate Energy – Other industry’s decline of 2.7%. The company's gas turbines give data centers the massive, consistent power t ...

Core Insights - GE Vernova Inc.'s (GEV) shares have increased by 3.5% over the past month, contrasting with a 2.5% decline in the Zacks Alternate Energy – Other industry, indicating strong performance in a challenging market [1][6] - The company is positioned as a key supplier for data centers, benefiting from the growing demand for reliable energy sources [1][3] Performance Overview - GEV's gas turbines are essential for data centers, creating opportunities for long-term contracts and recurring revenue [1][3] - Other alternative energy stocks, such as Constellation Energy Corporation (CEG) and Bloom Energy (BE), have underperformed, with CEG down 3.7% and BE down 26.2% in the same period [1] Growth Factors - GEV is enhancing profitability in its wind division through cost controls and disciplined project management [3] - The company benefits from a large installed base and steady maintenance demand in its gas and power services [3] - The rapid expansion of data centers and AI-driven energy needs is driving broader demand for energy infrastructure [3] Strategic Developments - In November 2025, GEV secured its first wind repower upgrade contract outside the U.S., enhancing its position in the lifecycle-extension market [4] - GEV has received orders for gas turbines to support Poland's energy transition, expected to reduce emissions by up to 60% compared to existing fossil fuel plants [8] Business Diversification - GEV's diversified operations across Power, Wind, and Electrification allow it to offer a comprehensive suite of solutions, appealing to a wide range of customers [9] Earnings Estimates - The Zacks Consensus Estimate for GEV's 2025 earnings per share (EPS) indicates a decrease of 3.36%, while the estimate for 2026 implies a slight increase of 0.55% [10] Challenges - GEV faces global supply-chain disruptions and rising input costs, which may impact production timelines and profitability [12][13] - The company anticipates that global tariffs in 2025 will increase costs, with a projected impact of $300-$400 million for the year [14][15] Financial Performance - GEV has a trailing 12-month return on equity of 17.07%, significantly higher than the industry average of 6.23% [16] - GEV is currently trading at a forward P/E ratio of 48.66, which is a premium compared to the industry's 20.85 [18] Investment Outlook - GEV is strengthening its growth profile through improved profitability in its wind division and rising demand for energy infrastructure [21] - Current shareholders are advised to stay invested, while new investors may consider waiting for a more favorable entry point [22]

Core Insights - GE Vernova Inc.'s shares have increased by 38.3% over the past six months, outperforming the Zacks Alternate Energy – Other industry's growth of 29.2% [1] - The company is benefiting from the growing demand for energy infrastructure driven by the expansion of data centers and artificial intelligence [4][21] Performance Comparison - Other alternative energy stocks, such as Constellation Energy Corporation and Crescent Energy Company, have underperformed, with CEG shares rising 23.3% and CRGY shares gaining 6.5% in the same period [2] Factors Contributing to Growth - GE Vernova's focus on improving profitability in the wind division and strong performance in gas and power services are key growth drivers [4] - The company has started operations at the Jafurah Cogeneration ISPP in Saudi Arabia, enhancing its position for future projects [4] - A contract to provide grid-stabilizing technology for Transgrid in Australia expands GE Vernova's business into renewables integration [5] - The acquisition of the remaining 50% stake in Prolec GE is expected to increase scale and margins [8] Financial Performance - In Q3 2025, GE Vernova reported orders worth $14.6 billion, reflecting a 55% organic increase, with a backlog increase of $6.6 billion [9] - The Gas Power equipment backlog expanded from 55 GW to 62 GW, indicating rising customer commitments [9] Earnings Estimates - The Zacks Consensus Estimate for 2025 and 2026 EPS indicates a decrease of 6.04% and 2.89%, respectively, over the past 60 days [10] - The company's trailing 12-month return on equity is 17.07%, higher than the industry average of 7.99% [17] Valuation - GE Vernova is currently trading at a forward P/E of 47.93X, a premium compared to the industry's 24.15X [19] - Constellation Energy is trading at 31.61X, while Crescent Energy Company is at a discount of 6.21X compared to the industry [20] Strategic Positioning - GE Vernova's diversified business across Power, Wind, and Electrification allows it to offer a comprehensive suite of solutions, appealing to a broad range of customers [21] - Despite the positive aspects, the company faces challenges such as supply-chain issues and declining earnings estimates [12][10]

Core Viewpoint - Constellation Energy Corporation (CEG) has experienced a significant share price increase of 51.7% over the past three months, outperforming the Zacks Alternate Energy – Other industry's growth of 28.2%, primarily due to its strong nuclear operations [1][8]. Group 1: Company Performance - CEG's nuclear fleet provides a reliable, stable, and affordable source of electricity, contributing to environmental sustainability by producing zero-emission energy [1]. - The company expects capital expenditures of nearly $3 billion for 2025 and $3.5 billion for 2026, with approximately 35% allocated for the acquisition of nuclear fuel to increase inventory levels [4][8]. - CEG's nuclear fleet capacity factor was 94.1% in the first quarter, an improvement from 93.3% in the previous year [5]. Group 2: Market Position and Strategy - CEG is focusing on powering data centers directly from its nuclear energy generation facilities, which helps avoid costly long-distance power transmission [6][9]. - The company anticipates more than 13% adjusted operating earnings growth on base earnings through 2030, driven by factors such as production tax credits and improvements in outage durations [9]. Group 3: Financial Metrics - CEG's trailing 12-month return on equity stands at 21.93%, significantly higher than the industry average of 8.41%, indicating effective utilization of shareholders' funds [16]. - The Zacks Consensus Estimate for 2025 earnings per share indicates a decrease of 1.05%, while the estimate for 2026 implies a slight increase of 0.7% over the past 60 days [11]. Group 4: Shareholder Value - CEG has authorized a share repurchase program of up to $3 billion, with approximately $841 million remaining as of March 31, 2025 [18]. - The company aims to increase its annual dividend by 10%, subject to board approval, and pays a quarterly dividend to its shareholders [19]. Group 5: Valuation - CEG is currently trading at a premium compared to its industry on a forward 12-month P/E basis, indicating a higher valuation relative to peers [20].

Core Viewpoint - Constellation Energy Corporation (CEG) has experienced a 30.1% increase in share price year-to-date, outperforming the Zacks Alternate Energy – Other industry's growth of 17.2%, driven by strong nuclear operations and the growing demand for clean energy [1][9]. Group 1: Company Performance - CEG's primary power production is derived from its nuclear fleet, which is well-positioned regarding nuclear fuel supply, supported by long-term uranium contracts extending into the 2030s [4]. - The company accounts for approximately 10% of the nation's total clean energy production and has a nuclear fleet capacity factor of 94.1% in Q1 2025, up from 93.3% in the previous year [5][9]. - CEG's capital expenditures are projected to be nearly $3 billion and $3.5 billion for 2025 and 2026, respectively, with about 35% allocated for nuclear fuel acquisition [6]. Group 2: Strategic Developments - CEG has entered into a 20-year nuclear power purchase agreement with Meta, set to begin in 2027, which supports the relicensing of its Clinton nuclear facility [10]. - The Public Utility Commission of Texas approved CEG's acquisition of Calpine Corporation, enhancing its clean energy capabilities by merging Calpine's low-emission assets with CEG's nuclear fleet [11]. Group 3: Financial Metrics - The Zacks Consensus Estimate for CEG's earnings per share (EPS) indicates a growth of 0.43% for 2025 and 3.5% for 2026 [12]. - CEG has reported an average earnings surprise of 7.41% over the last four quarters, indicating consistent performance [14]. - The company's trailing 12-month return on equity stands at 21.93%, significantly higher than the industry average of 8.35% [19]. Group 4: Shareholder Returns - CEG has authorized a share repurchase program of up to $3 billion, with approximately $841 million remaining as of March 31, 2025 [17]. - The company aims to increase its quarterly dividend by 10% annually, subject to board approval [18].

Core Viewpoint - Constellation Energy Corporation (CEG) has experienced a significant share price increase of 12.1% over the past month, outperforming the Zacks Alternate Energy – Other industry growth of 4.9% and the Zacks S&P 500 Composite [1][2] Group 1: Performance and Growth Factors - CEG is enhancing its clean energy contributions through efficient nuclear plant operations and extending the lifespan of existing plants via new licenses [1] - The company has developed a diverse procurement strategy for nuclear fuel, securing long-term uranium supply agreements extending into the 2030s to mitigate market disruptions [6] - Planned capital expenditures are nearly $3 billion for 2025 and around $3.5 billion for 2026, with approximately 35% allocated to nuclear fuel acquisition [7] - CEG is actively expanding its renewable energy portfolio, balancing investments between nuclear capabilities and renewables to support long-term earnings growth [8] - The operational efficiency of CEG's nuclear fleet is a key strength, maintaining a fleetwide capacity factor above 94%, which is about 4% higher than the industry average [10] Group 2: Earnings and Financial Performance - CEG has a consistent earnings history, with positive surprises reported in the last four quarters, indicating strong financial performance [11] - The Zacks Consensus Estimate for CEG's earnings per share has increased by 0.97% for 2025 and 4.32% for 2026 over the past 60 days, with long-term earnings growth projected at 12.4% [14] - CEG's trailing 12-month return on equity stands at 21.96%, significantly higher than the industry average of 8.39%, reflecting effective utilization of shareholders' funds [19] Group 3: Capital Return and Valuation - The company has authorized a share repurchase program of up to $3 billion, with $991 million remaining as of December 31, 2024 [17] - CEG aims to increase its quarterly dividend by 10% annually, subject to board approval, enhancing shareholder value [18] - CEG is currently trading at a premium compared to its industry on a forward 12-month P/E basis, indicating strong market positioning [21] Group 4: Market Positioning - CEG is well-positioned to meet the growing demand for clean energy, particularly driven by the expansion of AI-powered data centers [24] - The company’s robust generation capacity equips it to effectively address rising energy demands across its service areas [24]