Is GE VERNOVA Inc (NYSE:GEV) the Best Energy Stock to Buy According to Jim Cramer?
We recently published a list of Jim Cramer’s Latest Portfolio: Top 10 Stocks in July. Since GE VERNOVA Inc (NYSE:GEV) ranks 10th on the list, it deserves a deeper look.
Jim Cramer in a fresh episode of “Mad Money” on CNBC said that while investing isn’t easy, it’s made even more difficult by “authentic Wall Street gibberish” and “arcane technology.” Cramer said that there’s an “entire industry” in Wall Street wanting people to think that investing is hard and “ordinary people” cannot do it on their own. Cramer said that many people in the financial industry are just “after your fees” and they aren’t interested in making money from original investing. Cramer said that hedge fund managers and mutual funds make investing look inaccessible and impenetrable.
Cramer said that he’s “pulling back the curtain” and emphasized that investing isn’t “rocket science” or “brain surgery” and you don’t need to go to a business school to understand it. Cramer pitched himself as a “coach” or a “translator” who can explain the meaning of complex financial terms to ordinary people.
“You can comprehend all the mystical-sounding vocabulary we throw around here as long as you have a translator, a coach like me, who can explain what the darn words mean.”
For this article we watched several latest programs of Jim Cramer aired on CNBC and picked 10 stocks he’s talking about. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
GE VERNOVA Inc (NYSE:GEV)
Number of Hedge Fund Investors: 18
Talking about the strong performance of GE VERNOVA Inc (NYSE:GEV) in a latest program, Cramer said that when General Electric separated this business, no one expected the company to be this strong.
“Turns out the ugly duckling was a swan in disguise.”
Cramer said that GE VERNOVA Inc (NYSE:GEV) “wins” because of data center demand. He said while GE VERNOVA Inc (NYSE:GEV) makes natural gas turbines, it also operates “small-form” wind and nuclear plants.
Cramer said that GE VERNOVA Inc (NYSE:GEV) is in a “sweet spot” in the energy industry.
GE VERNOVA Inc (NYSE:GEV) Power segment growth is driven by advanced gas turbines and related services. The Electrification segment is also expanding quickly, supported by trends such as AI data centers and the need for grid modernization and high-voltage direct current (HVDC) technologies.
Additionally, the renewable segment is expected to break even in 2024 and become profitable by 2025, indicating significant potential for growth.
GE VERNOVA Inc (NYSE:GEV) business is diversified since it operates across three segments: Power, Wind, and Electrification. The company operates across both the upstream and downstream channels of power generation. Its products are deployed across 100 countries, contributing to around 30% of global electricity generation. The stock is poised to grow on the back of secular growth trends. Electricity demand is expected to jump 55% by 2040, driven by data centers, EVs and broader energy transition.
Overall, GE VERNOVA Inc (NYSE:GEV) ranks 10th on Insider Monkey’s list titled Jim Cramer’s Latest Portfolio: Top 10 Stocks in July. While we acknowledge the potential of GE VERNOVA Inc (NYSE:GEV), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GE VERNOVA Inc (NYSE:GEV) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.