GEV Stock Rises 37.5% YTD: Time to Lock in Gains or Ride the Wave?

GE Vernova Inc.’s GEV shares have risen 37.5% year to date, outperforming its Zacks Alternate Energy – Other industry’s decline of 0.4%. Demand is supported by a broad electricity cycle tied to grid upgrades, electrification, data centers, reliability and energy security, giving the company better revenue visibility than a typical equipment supplier.
 

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Other alternative energy stocks, such as Crescent Energy Company CRGY and Bloom Energy BE, have also outperformed the industry during the same period. Shares of Crescent Energy and Bloom Energy have risen 67.7% and 144%, respectively.

Considering GE Vernova’s outperformance, investors might be left wondering if this is a good time to add GEV 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 Acting in Favor of GEV

GE Vernova is benefiting from a broad electricity investment cycle tied to grid modernization, electrification, data center and AI expansion, reliability needs and energy security. This is not limited to one product line. Total backlog reached $176 billion in second-quarter 2026, up from $150.2 billion as of 2025-end. The expansion was led by the Power and Electrification segments, indicating that strong demand is translating into committed business across generation and grid infrastructure.

GE Vernova has been selected by Laing O’Rourke to deliver a new 400 kV gas-insulated switchgear substation in Chesterfield, England, as part of National Grid’s Brinsworth-to-Chesterfield and Chesterfield-to-High Marnham transmission projects. This directly benefits GEV’s Electrification business by adding another major high-voltage grid project to its portfolio at a time when utilities are investing heavily in transmission infrastructure to accommodate rising electricity demand and the growing integration of renewable power.

In August 2026, GE Vernova agreed with South Korea’s LS ELECTRIC to establish a joint venture, focused on Voltage-Sourced Converter High-Voltage Direct Current (VSC-HVDC) technology and projects in Korea. This combines GEV’s advanced HVDC technology and global project experience with LS ELECTRIC’s local manufacturing and project-execution capabilities, giving GEV a stronger position to win South Korean transmission projects and potentially expand into other markets.

GE Vernova has launched the GL316c, a new 420 kV, 63 kA high-voltage circuit breaker that uses a CO???/O??? gas mixture instead of SF???, a highly potent greenhouse gas traditionally used in high-voltage electrical equipment. This strengthens GEV’s Electrification/Grid Solutions portfolio at a time when utilities are investing heavily in transmission upgrades and looking for lower-emission alternatives to conventional equipment.

Key Challenges for GEV

The company relies on complex global supply networks for components used in its gas turbines, wind turbines and grid infrastructure. Disruptions in raw material availability, along with logistical delays, have affected and could continue to adversely impact GE Vernova’s production timelines and increase input costs, weighing on its bottom line.

Throughout 2025 and 2026, the United States and other countries imposed global tariffs, resulting in additional costs. The estimated total cost impact of these global tariffs is currently projected to be in the $100-$200 million range in 2026, after accounting for contractual protections and mitigation measures.

GEV Stock’s Earnings Estimates

The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an increase of 73.09% year over year. GEV’s long-term (three to five years) earnings growth rate is 14%.
 

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The Zacks Consensus Estimate for Crescent Energy’s 2026 EPS indicates an increase of 40.6% year over year. The bottom-line estimate for Bloom Energy implies an improvement of 238.2% year over year.

GEV’s Earnings Surprise History

The company beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average surprise of 74.03%.

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GEV’s Return on Equity Higher Than Industry

The company’s trailing 12-month return on equity of 42.42% is higher than the industry average of 7.13%. Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.

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GEV Stock Trades at a Premium

GE Vernova is currently trading at 34.22X, a premium compared to its industry’s 23.69X on a forward 12-month P/E basis.

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What Should Investors Do Now?

GE Vernova is benefiting from a broad electricity and grid investment cycle, with strong demand across power generation and electrification driven by grid modernization, data centers, AI and energy security. Its new grid projects and HVDC joint venture in South Korea strengthen its Electrification portfolio, expand its international reach, and position the company for long-term transmission and grid-upgrade opportunities.

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, price performance and strong ROE. GEV currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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