While GE Vernova did not make the latest list of new buys by top funds, the General Electric spinoff has generated sustained buzz on Wall Street. A budding breakout — and potential early entry — for GE Vernova stock provides a glimpse of what is driving demand.
Impressive growth estimates, a strong industry group and rising fund ownership have helped propel GE Vernova onto the Investor's Business Daily Leaderboard. An upcoming expansion of the sustainable energy giant's direct air capture technology offers another reason to keep an eye on the stock.
Rising Earnings Growth Estimates
Part of the breakup of General Electric that created GE Aerospace and GE HealthCare Technologies, GE Vernova focuses on sustainable energy. It operates across three segments: Power, Wind and Electrification.
Over the last three quarters, GE Vernova has generated average earnings growth of 123%. That includes prior-year quarters that showed a loss.
Sales growth during that time has ranged from 5% to 11%. In the second quarter, the company generated $9.1 billion in revenue.
Upcoming estimates for earnings growth have caught Wall Street's attention. For the full year, analysts forecast a 34% increase to $7.58 per share. They estimate a 64% spike to $12.46 per share in 2026.
GE Vernova Helps Fuel Strong Industry Group
Alongside peers like Bloom Energy, Enlight Renewable Energy and Ampirius Techniologies[ticker symb=AMPX], GE Vernova hails from the Energy-Alternative/Other industry group.
The group ranks a stellar No. 3 among the 197 groups IBD tracks. The top stocks to watch often come from the highest-ranked industries.
Like fellow energy stocks Enlight Renewable Energy and Ampirius Technologies, GE Vernova has seen rising demand for shares.
Since the September quarter of last year, the number of funds with a position in GE Vernova has jumped from 2,005 funds to 2,842. An impressive 203 funds with an A+ rating from IBD own shares of the sustainable energy leader.
Reducing Carbon With Direct Air Capture Technology
In partnership with Deep Sky — the world's first technology-agnostic carbon removal project developer — GE Vernova plans to deploy direct air capture, or DAC, technology at Deep Sky Alpha in Alberta, Canada.
With operations scheduled to begin by late 2026, GE Vernova says its direct air capture technology will have the capability to capture up to 1,500 tons of carbon per year.
GE Vernova Stock Looks To Fuel Breakout
As it works on a new consolidation, GE Vernova stock first looks to get back above its 21-day exponential moving average and its sharply rising 50-day line. On Tuesday, the stock held right around the 21-day benchmark.
The stock is targeting a 677.29 buy point. Clearing another point of resistance at 653.50 might offer an earlier alternate entry.
Look for the slumping relative strength line to turn higher to show renewed market leadership on any breakout attempt. Investors should also monitor the chart to see if GE Verova's 21-day line gets back above the 50-day benchmark to show rising technical strength.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
