UK markets closed
  • FTSE 100

    6,735.71
    -66.25 (-0.97%)
     
  • FTSE 250

    20,615.59
    -160.21 (-0.77%)
     
  • AIM

    1,173.12
    -10.50 (-0.89%)
     
  • GBP/EUR

    1.1248
    -0.0014 (-0.12%)
     
  • GBP/USD

    1.3583
    -0.0108 (-0.79%)
     
  • BTC-GBP

    26,312.64
    +555.09 (+2.16%)
     
  • CMC Crypto 200

    701.93
    -33.21 (-4.52%)
     
  • S&P 500

    3,768.25
    -27.29 (-0.72%)
     
  • DOW

    30,814.26
    -177.24 (-0.57%)
     
  • CRUDE OIL

    52.04
    -1.53 (-2.86%)
     
  • GOLD FUTURES

    1,827.70
    -23.70 (-1.28%)
     
  • NIKKEI 225

    28,519.18
    -179.12 (-0.62%)
     
  • HANG SENG

    28,573.86
    +77.00 (+0.27%)
     
  • DAX

    13,787.73
    -200.97 (-1.44%)
     
  • CAC 40

    5,611.69
    -69.45 (-1.22%)
     

General Electric (GE) Dogger Bank Contract Moves a Step Forward

Zacks Equity Research
·3-min read

General Electric Company GE yesterday communicated that the financial requirements for Phase A and B of the Dogger Bank Wind Farm have been taken care of by the co-sponsors. With this, a green signal to begin construction for the Phase A has been issued, signaling toward the requirement for the conglomerate’s Haliade-X wind turbines.

To recap, GE Renewable Energy finalized contracts to supply Haliade-X wind turbines at the Dogger Bank this September. The financial terms of the contract were not disclosed.

General Electric’s shares gained 0.5% yesterday, ending the trading session at $10.50 per share.

Inside the Headlines

Dogger Bank is a joint venture between Equinor ASA EQNR and SSE Renewables. It is situated in the northeast coast of England. To be developed in three phases, Dogger Bank will be the biggest offshore wind farm upon completion in 2026. Its combined installed capacity will be 3.6 GW of electricity.

As noted, a go-ahead to the commencement of construction work at Phase A of Dogger Bank means that healthy business for GE Renewable Energy in the fourth quarter of 2020. As agreed upon earlier, GE Renewable Energy will supply 95 units of Haliade-X 13 MW wind turbines for Phase A of the project. A similar number of turbines will also be supplied for Phase B.

In addition to the turbines, Renewable Energy will be providing operational support to the turbines for five years per the terms of the Services and Warranty agreement.

Also, GE Energy Financial Services in association with the project’s co-sponsors participated by supporting Bpifrance Assurance Export’s insurance cover.

Zacks Rank, Estimate Trend and Price Performance

With a market capitalization of $85.5 billion, General Electric currently carries a Zacks Rank #3 (Hold). Solid liquidity position and the company’s efforts to deleverage balance sheet as well as portfolio-restructuring initiatives are expected to be beneficial in the quarters ahead. However, the pandemic-related woes are impacting businesses, which are concerning.

In the past 30 days, the company’s bottom-line estimates decreased from 8 cents to 7 cents for the fourth quarter of 2020, while the same has been stable at earnings of 5 cents for the first quarter of 2021.

General Electric Company Price and Consensus

 

General Electric Company Price and Consensus
General Electric Company Price and Consensus

General Electric Company price-consensus-chart | General Electric Company Quote

In the past three months, General Electric's shares have gained 58.8% compared with the industry’s growth of 17.5%.



 

Stocks to Consider

Two better-ranked stocks in the industry are 3M Company MMM and Danaher Corporation DHR. The two companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 30 days, earnings estimates for these companies have improved for the current year. Also, earnings surprise for the last four reported quarters, on average, was 1.85% for 3M and 17.00% for Danaher.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot stocks we're targeting >>


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
 
3M Company (MMM) : Free Stock Analysis Report
 
General Electric Company (GE) : Free Stock Analysis Report
 
Danaher Corporation (DHR) : Free Stock Analysis Report
 
Equinor ASA (EQNR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research