GE Vernova Inc. (GEV) is my top growth pick because it’s capitalizing on the massive, unavoidable investment cycle in electrification and grid modernization – a trend that has accelerated dramatically due to the demands of the Artificial Intelligence (AI) data center boom, notes John Gardner, founder and principal of Blackhawk Wealth Advisors’ Market Insights.
GEV is the global industrial leader that manufactures the essential hardware — from gas turbines and nuclear technology to grid transformers and advanced software — required to build and manage the world’s next-generation power system. The core thesis is simple: every utility, government, and hyperscaler racing to power new AI complexes must go through GEV.
Indeed, the company sits at the junction of two irreversible trends: the need for reliable, high-capacity baseload power (which requires GEV’s gas and nuclear segments) and the need for a smarter, more-resilient grid (which requires GEV's electrification segment) to handle erratic power loads. The three compelling financial pillars supporting this growth stock pick are...
Massive, Multi-Year Visibility: GEV's Power and Electrification segment has a tremendous, growing order backlog. It is now near $130 billion and projected to reach $200 billion by 2028. This staggering figure provides a secure revenue floor and visibility well into the end of the decade, protecting the company from short-term economic turbulence and ensuring long-cycle profitable execution.
Explosive Earnings Acceleration: Strong earnings have propelled this 2024 General Electric Co. spin-off. Solid future earnings growth prospects are appealing. Consensus estimates project 34% EPS growth in 2025, with that acceleration expected to jump to over 70% in 2026.
Solving the Grid Bottleneck: The primary constraint on data center buildout today is the grid connection itself. GEV’s equipment – particularly its large transformers and sophisticated GridOS software – solves this bottleneck, making GEV an indispensable partner to every utility and tech firm racing to get power online. The company is strategically positioned to benefit from the highest-priority capital spending in the global energy ecosystem.
I project that the market is still underestimating the scope and duration of this power infrastructure buildout. Investing in GEV today is a strategic purchase of the factory floor for the future global energy system.
Recommended Action: Buy GEV.
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