GEV

There's a lot for investors to be excited about when it comes to the growth trajectory of GE Vernova (NYSE: GEV). The company's second-quarter earnings were impressive, with total revenue up 22% year over year, orders jumping 88% in the same time period, and the backlog ballooning to $176 billion. Management raised guidance for both revenue and free cash flow. Overall, an incredibly strong showing for the Boston-based business. Why then did the industrial stock drop? The reason is one segment in particular: wind. GE Vernova's wind revenue declined 10%, while orders sank 40%. The widening losses in the wind division concerned investors more than the wins in power and electrification excited them. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » The reaction from investors was largely overblown, in my opinion. The company's long-term bull case is still compelling. Its power and electrification divisions, which make up the vast majority of the business, are still riding high on insatiable demand from AI infrastructure. GE Vernova's gas turbine capacity is sold out through 2028, free cash flow exceeds $5 billion, and the wind segment is becoming a smaller piece of GE Vernova's pie. So yes, the company's difficulties with its wind business are real and a significant drag overall, but that's not the whole story for GE Vernova. Any dips in stock price caused by an overreaction to the wind segment should be seen as an opportunity to buy at a lower price, not a red flag. GE Vernova's stock is still up 45% in 2026 and more than 580% since General Electric split into three separate companies in April of 2024. Before you buy stock in GE Vernova, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and GE Vernova wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $430,571!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,399,268!* Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 28, 2026. Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Vernova. The Motley Fool has a disclosure policy. GE Vernova's Electrification Revenue Jumped 68% on Data Center Deals in a Single Quarter. So Why Did the Stock Sell Off? was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the company's strategic focus to growing public and political opposition to data center development, specifically regarding power and water demands. The company is positioning its technology as a solution to permitting delays, allowing operators to demonstrate long-term water security without competing for municipal supplies. A new exclusive partnership with Kubota Corporation targets residential development in water-scarce regions of Texas and California, where water availability is currently a primary gating item for project approval. The joint venture with GE Vernova provided critical technology validation this summer through the operation of an AirJoule Core system at their new Advanced Research Center. Operational progress is being driven by a 'parallel' engineering approach, running reliability testing and design for manufacturing simultaneously to accelerate market adoption. International expansion in the UAE is focused on both efficiency and resiliency, leveraging the region's heavy reliance on centralized desalination infrastructure. Management expects modest paid deployment revenue through the joint venture in 2026, with more meaningful commercial revenue beginning in 2027. The company is preparing for contract manufacturing in 2027 by simplifying the bill of materials and leveraging existing supply chains for commodity components. Liquidity is projected to be sufficient to fund operations, the joint venture, and planned commercial deployments into 2028. Future product development aims to scale capacity from the current 2,000 liters per day to targets of 10,000 and 20,000 liters to meet large-scale industrial needs. Upcoming deployments in Europe with the Net Zero Innovation Hub will focus on integrating waste heat-to-water capabilities within real-world data center operations. The $8.5 million net loss for the quarter was primarily driven by $5.1 million in non-cash losses related to the fair value increase of earn-out and subject vesting shares liabilities. Full-year 2026 cash spend guidance was revised slightly higher to $27 million to $28 million to support increased commercialization across multiple market applications. The company completed a registered direct offering in June, contributing to a quarter-end cash balance of $41.4 million. Regulatory risks are highlighted by new moratoriums on data center permits in New York and a pause on grid connections for data centers in Texas, which management views as a catalyst for adoption of their off-grid water solutions. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is targeting an installed base of 1.2 million conventional desiccant wheel units, specifically for facilities operating between 30% and 50% relative humidity. Initial strategic deployments are focused on industrial customers who value both high-efficiency dehumidification and the generation of pure water. Design for manufacturing (DFM) activities for both Prime and Core platforms are on track for 2027 contract manufacturing engagements. Management noted that because most components are commodity-based, the transition to contract manufacturing will not be a 'heavy lift' for the organization. The Prime system commissioned in May is running 24/7 with high uptime, and management confirmed they are on track to hit the 2,000 liters per day target. Optimization efforts have focused on fan timing, vacuum pump sequencing, and thermal management of sorbent chambers based on data from Core field deployments. Carrier remains a strategic partner focused on the $300 billion HVAC market and heat recovery systems that provide the warm water necessary for AirJoule systems in data centers.

Download the Complete Report Here Key Takeaways: 2Q26 reinforced IMSR’s milestone-driven commercialization roadmap; the more important development was a material improvement in the long-term economics of the business. Terrestrial Energy advanced across all three execution pillars, engineering and regulation, supply chain, and commercial development, with Texas A&M moving into site execution, NRC and DOE programs progressing, and Riot advancing toward first-site selection. At the same time, management raised estimated lifetime revenue per IMSR Plant to approximately $2.7 billion from $2.1 billion and blended gross margin to 33% from 22%, with 79% of revenue expected after construction through Core-unit and Fuel Salt supply. Commercial and regulatory execution improved visibility into IMSR’s next phase of development. Site control and development agreements moved the flagship RELLIS project into active site-level work, while NRC approval of the PIE methodology added a second reusable foundational element to the IMSR licensing basis and continued TETRA/TEFLA progress further advanced the licensing and fuel-readiness pathway. We view these developments as strengthening the quality of IMSR’s flagship project while further de-risking the path toward commercial deployment. Liquidity remains a meaningful strategic advantage as IMSR moves into a more execution-intensive phase. The company ended 2Q26 with approximately $283.4 million of cash and investments, while quarterly burn declined to $6.4 million, or approximately $2.2 million per month, from $7.9 million in 1Q26. With spending expected to increase in 2H26 as site work, testing and program activity ramp, the balance sheet and absence of financial debt provide substantial flexibility to fund near-term de-risking without creating near-term financing pressure. Texas A&M-RELLIS made the most important project-level progression during the quarter, moving from commercial project selection toward site-specific execution. Terrestrial Energy signed ground-lease and research agreements covering approximately 77 acres at RELLIS, securing site control and enabling characterization and environmental work required for a future NRC construction permit application. The company subsequently engaged Zachry Nuclear to support site characterization and data collection, adding established nuclear engineering capability to the development effort. We view this as a meaningful step beyond the original project announcement, as RELLIS is now progressing from commercial intent toward a controlled development site with work underway to support permit preparation. The next phase should be measured by progress through site characterization, environmental review and construction-permit preparation. These activities are contributing to the expected 2H26 spending ramp, but successful execution would further reduce project risk and improve readiness for licensing, financing and eventual construction. The unit-economics reset meaningfully improves the revenue and gross-profit potential embedded in each successful IMSR deployment. Following roughly 12 to 18 months of additional engineering work, management increased estimated cumulative revenue per IMSR Plant to approximately $2.7 billion from $2.1 billion, or roughly 29%, while blended gross margin rose to 33% from 22%. The revision reflects refinement of the underlying economics rather than a change in the plant design or business model. The revised model includes approximately $98 million of pre-construction revenue at a 23% margin, $477 million of construction services and component supply at 26%, $1.58 billion of Core-unit supply at 33%, and $583 million of Fuel Salt supply at 40%. Fuel strategy remains a core IMSR differentiator, combining a simpler supply-chain pathway with a meaningful recurring revenue opportunity. Management estimates approximately $583 million of Fuel Salt revenue over the life of an IMSR Plant, representing 21% of lifetime revenue at a 40% gross margin. IMSR uses standard-assay LEU enriched below 5% U-235, avoiding the HALEU supply constraints facing many advanced-reactor designs, while Westinghouse is working with Terrestrial Energy on the supply of enriched uranium tetrafluoride and TEFLA is developing the downstream process required to produce commercial IMSR Fuel Salt. Because IMSR is liquid-fueled, the production chain eliminates a separate physical fabrication step involving fuel pins, assemblies or TRISO particles, while qualification is focused on establishing the thermophysical characteristics of the liquid fuel chemistry rather than demonstrating the structural performance of physical fuel elements and cladding. While commercial Fuel Salt production and qualification still need to be completed, the combination of standard enrichment and fewer fabrication steps could reduce an important source of fuel supply complexity and support a high-margin, long-duration revenue stream. Liquid fuel qualification remains less familiar to regulators, however, and still represents an execution requirement. NRC approval of the PIE methodology adds a second reusable element to the IMSR licensing basis. The broader regulatory program is now shifting toward the technical data required for plant licensing and commercial readiness. The approval follows the earlier Principal Design Criteria report, with both analyses able to be referenced in future applications without repeating the underlying regulatory review, an important feature for standardized fleet deployment. Management expects at least two additional Topical Report submissions during the remainder of 2026, while TETRA continues to generate reactor data for a future NRC operating license application, TEFLA advances the commercial Fuel Salt production process, and expanded graphite irradiation testing at NRG Petten supports materials qualification and supplier selection. Supply chain execution is also progressing through continued procurement of fuel, components and services for TETRA and TEFLA, alongside Westinghouse engagement on enriched uranium tetrafluoride supply. We view progress across these programs as continuing to reduce the key regulatory, technical and supply chain dependencies ahead of commercial deployment. The Riot collaboration remains IMSR’s largest incremental data-center opportunity, but the next meaningful milestone is conversion of the 4GW framework into an identifiable first project. Riot and Terrestrial Energy are evaluating multiple IMSR Plants representing up to 4GW of potential nuclear capacity within the broader 7.8GW commercial pipeline, with management now focused on down-selecting an initial site. We believe the opportunity should increasingly be measured by progress toward site control, development scope, financing and offtake rather than aggregate GW, as first-site selection would begin converting a broad commercial framework into a site-specific development opportunity. Project financing should become an increasingly important measure of commercial de-risking as IMSR’s project pipeline advances, particularly given Terrestrial Energy’s capital-light role. Management does not expect first-of-a-kind projects to rely solely on conventional non-recourse project finance, with early deployments more likely to require a combination of strategic customer capital, infrastructure partners and government support. Importantly, Terrestrial Energy intends to direct corporate capital toward engineering, licensing, Core-unit manufacturing and Fuel Salt production rather than owning and funding multibillion-dollar generating assets. We therefore view evidence of third-party capital formation around Texas A&M, Riot and other projects as an increasingly important commercial KPI, as it would validate the ability to advance deployments while preserving the company’s capital-light business model. Leadership additions are increasingly aligned with the next phase of licensing and project execution. Pamela Cowan joined as EVP of Engineering in July with more than 35 years of nuclear-sector experience, while Kathryn McCarthy joined the Board following senior nuclear-project roles at Idaho National Laboratory and Oak Ridge National Laboratory. The organizational buildout is also beginning to show in the cost base, with 2Q26 G&A expense rising approximately $0.7 million sequentially to $8.0 million, including roughly $0.5 million of higher stock-based compensation. We view the increase as primarily supporting execution capacity as RELLIS enters site work, additional NRC submissions are prepared, and TETRA/TEFLA activity advances. Financial performance remained consistent with IMSR’s pre-revenue development stage, with sequential loss improvement primarily reflecting testing timing and higher investment income rather than a change in underlying spending requirements. Net loss narrowed to $9.4 million from $10.5 million in 1Q26, while R&D declined approximately $1.1 million sequentially to $3.5 million as certain testing expenditures shifted between periods and G&A increased to $8.0 million from approximately $7.3 million. Other income improved to approximately $2.35 million, supported by $2.48 million of interest and dividend income and minimal interest expense. We continue to view GAAP earnings as a secondary KPI at this stage, with the more relevant measure being whether development spending translates into licensing, technical and commercial milestones. Liquidity remains a meaningful strategic advantage as IMSR enters a more execution-intensive phase of commercialization and project development. Terrestrial Energy ended June with approximately $283.4 million of cash and investments, compared with $289.9 million at the end of 1Q26, while quarterly cash burn declined to $6.4 million, or approximately $2.2 million per month, from $7.9 million in 1Q26. The improvement largely reflected timing and scope changes across testing activities, including the expanded graphite irradiation program, while management expects spending to increase through the second half as RELLIS site characterization, testing, DOE-backed TETRA/TEFLA programs and organizational capacity ramp. Working-capital requirements remain modest, with accounts payable and accrued expenses of approximately $4.3 million and total current liabilities of only $6.2 million at quarter end. With more than $280 million of liquidity and no financial debt, IMSR retains substantial flexibility to fund this higher level of activity without near-term financing pressure. A key monitorable is whether the 2H26 spending ramp converts into tangible regulatory, technical and project milestones that further de-risk commercialization. 2H26 should be defined by higher investment and additional de-risking across licensing, project development and the two principal supply businesses. Management continues to expect at least two additional NRC Topical Report submissions during the remainder of 2026, while work at the approximately 77-acre Texas A&M-RELLIS site should progress through characterization, environmental evaluation and preparation for a future construction permit application. TETRA and TEFLA remain central to generating licensing-quality reactor data and developing the commercial Fuel Salt production process, while additional graphite irradiation cycles support materials qualification and supplier down-selection. Commercially, the next steps include advancing Riot toward first-site selection within the previously announced up-to-4GW framework and developing the Core-unit and Fuel Salt production capabilities that underpin 79% of estimated lifetime plant revenue and the revised ~$2.7 billion per-plant economics. With spending expected to rise from the $6.4 million 2Q26 burn, we believe 2H26 execution should be judged less on near-term earnings and more on whether incremental investment converts into tangible licensing, site, fuel and manufacturing milestones that support the targeted 2034 first commercial operation. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. IMSR’s current valuation assigns a relatively modest enterprise value to the technology and development platform despite substantial liquidity and improving commercial economics. At $5.81 per share, Terrestrial Energy carries a market capitalization of roughly $616 million and adjusted enterprise value of approximately $332 million after netting $283.4 million of cash and investments at 2Q26 end, with no meaningful financial debt. Liquidity therefore represents approximately 46% of current equity value, while the remaining enterprise value reflects the company’s reactor technology and IP, two approved foundational NRC analyses, Texas A&M-RELLIS development site, DOE-supported TETRA and TEFLA programs, and commercial project pipeline. The valuation discount has widened despite continued regulatory, commercial and economic de-risking. At approximately $5.81 per share, IMSR trades well below the current Street target mean of $13.50. The shares also remain more than 40% below the $10.00 SPAC transaction price. More recently, adjusted EV has declined approximately 31% from the ~$482 million level at our May earnings update to ~$332 million currently, despite subsequent progress across Texas A&M site development, continued NRC and DOE execution, and the increase in estimated lifetime revenue per plant to ~$2.7 billion from $2.1 billion with blended gross margin rising to 33% from 22%. IMSR remains pre-revenue and meaningful licensing, engineering and project execution risks remain, but continued progress across NRC submissions, RELLIS development, Fuel Salt and Core-unit manufacturing, Riot first-site selection and project financing should incrementally reduce the probability discount applied to future deployments. Relative valuation provides additional context for the re-rating opportunity. Established Gen III operators command substantially higher EVs supported by operating assets and cash flows, while pre-revenue Gen IV developers trade primarily on regulatory progress, project visibility, fuel readiness and execution credibility. Within the advanced-reactor group, IMSR’s ~$332 million adjusted enterprise value remains toward the lower end of the peer range, despite substantial liquidity and continued progress across licensing, site development and commercial readiness. Given material differences in reactor technology, licensing maturity and business model, peer EVs are not directly comparable, but the current discount reinforces the extent to which commercialization timing and execution risk remain embedded in IMSR’s valuation. Successful delivery against upcoming regulatory, fuel, project and financing milestones provides the clearest pathway toward narrowing that gap. Read Exec Edge’s Initiation on Terrestrial Energy Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Terrestrial Energy’s Lifetime Revenue Up 29%, Advancing in Texas A&M, DOE Fuel Program – Quarterly Update Report appeared first on ExecEdge.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. GE Vernova (GEV) is back in focus after its strong second quarter 2026 report, where the company highlighted higher orders, revenue growth, improved margins and raised guidance for both revenue and free cash flow. See our latest analysis for GE Vernova. GE Vernova’s share price is now at $1,039.90, with the year to date share price return of 53.03% and a 1 year total shareholder return of 64.31%. The weaker 90 day share price return of a 4.64% decline suggests some of that momentum has cooled following earlier optimism around accelerating orders, earnings growth and the raised guidance. If you are looking to extend this theme of large scale energy infrastructure, it could be a useful time to scan the market using our power grid technology and infrastructure stocks screener to see what else is setting up for potential long term growth through the 36 power grid technology and infrastructure stocks. Bulls point to GE Vernova’s growth, guidance raise and order strength. Bears worry the recent surge has already priced that in. The next step is to see which side current valuation figures appear to support. The most followed valuation narrative currently places GE Vernova’s fair value at $1,269.77 per share versus the latest close at $1,039.90. This frames the stock as trading at a discount and sets up a very specific growth and profitability story. Read the complete narrative. Curious what justifies a higher fair value than today’s share price. The narrative leans heavily on recurring cash generation, rising margins, and a future profit multiple usually linked with higher growth companies. Want to see how those pieces fit together. Result: Fair Value of $1,269.77 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, if AI driven electricity demand, turbine orders, or wind segment restructuring expectations fall short, the current GE Vernova valuation narrative could unwind quickly. Find out about the key risks to this GE Vernova narrative. While the most popular narrative frames GE Vernova as 18.1% undervalued based on a fair value of $1,269.77, the SWS DCF model points in the opposite direction. On this view, GE Vernova’s current share price of $1,039.90 sits above an estimated future cash flow value of $915.13, which identifies the stock as overvalued. For investors, the key question is which story appears more realistic for long term cash generation. Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out GE Vernova for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With mixed opinions around GE Vernova’s valuation story and outlook, it can help to move fast, review the full picture, and weigh both sides for yourself. You can start with the 4 key rewards and 2 important warning signs. Do not stop your research with GE Vernova. Broaden your watchlist now using focused stock ideas that can help you stress test and refine your overall approach. Spot potential high growth opportunities early by scanning the market for 19 elite penny stocks with strong financials before wider attention arrives. Target quality at a reasonable price by reviewing companies in the 49 high quality undervalued stocks that may offer fundamentals that differ from the headline story. Prioritise resilience and capital preservation by checking stocks in the 85 resilient stocks with low risk scores that score well on financial strength and volatility. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GEV. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

GE Vernova Inc.’s GEV second-quarter 2026 results suggest that the company is entering a stronger earnings growth phase. The company delivered significant growth in orders and revenues, expanded margins and generated substantial free cash flow during the quarter. With demand continuing to build across its Power and Electrification businesses, GE Vernova is increasingly benefiting from a combination of higher volumes, favorable pricing and improved execution.The company’s second-quarter performance was particularly strong on the top line. Revenues reached $11.1 billion, representing a 22% year-over-year increase and 12% organic growth. Orders were even stronger, reaching $24.2 billion, up 88% organically, driven primarily by Power and Electrification. GE Vernova’s backlog also increased $13 billion sequentially to approximately $176 billion, providing substantial visibility into future revenues.Profitability is another important part of the earnings story. Adjusted EBITDA increased to $1.2 billion, while adjusted EBITDA margin reached 11.3%, marking an improvement of 340 basis points organically. The improvement reflects stronger volumes, favorable pricing and disciplined execution. As more of GE Vernova’s growing backlog converts into revenues, continued operating leverage could provide additional support to earnings and margins.GE Vernova’s raised 2026 guidance further highlights the strength of its current momentum. The company now expects revenues of $45.5-$46.5 billion compared with its previous outlook of $44.5-$45.5 billion. Free cash flow guidance was also raised to $11.5-$12.5 billion from $6.5-$7.5 billion, while adjusted EBITDA margin guidance remained unchanged at 12-14%. Rising electricity demand, data-center expansion and tight power markets are creating a favorable earnings environment for utilities with growing generation capacity and strong power portfolios.Vistra VST is benefiting from higher power and capacity prices, an expanding generation portfolio and growing demand from large electricity users.Constellation Energy CEG is positioned to benefit from rising demand for reliable, carbon-free power, particularly from data centers and other large customers. The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an increase of 74.11% and that for 2027 EPS implies a decline of 21.2% year over year. Image Source: Zacks Investment Research GEV is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 38.82X compared with the industry average of 24.81X. Image Source: Zacks Investment Research In the past six months, the company’s shares have risen 30.4% against the industry’s 5.5% decline. Image Source: Zacks Investment Research The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 GE Vernova Inc. (GEV) : Free Stock Analysis Report Constellation Energy Corporation (CEG) : Free Stock Analysis Report Vistra Corp. (VST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Order backlogs are a central theme this earnings season, and AI and data center companies with increasing order backlogs are expected to continue to prosper. Super Micro Computer (SMCI) and GE Vernova (GEV) made it clear that Wall Street remains obsessed with order backlogs. Super Micro Computer got investors excited when it announced on July 21 that its order backlog exceeded $60 billion. For context, this number is almost three times SMCI’s sales for 2025. The other thing that got investors excited was SMCI's announcement that it expects its operating margins to be between 15% and 17%, significantly above its previous forecast of 8.2% to 8.4%. Naturally, expanding operating margins often result in big earnings surprises, and earnings surprises drive stock prices Meanwhile, GE Vernova posted a 2.8% revenue surprise and a 20.3% earnings miss in its report on July 22. Despite the miss, the big news was that its order backlog rose 32.2% to $24.2 billion in the second quarter, up from $18.3 billion in the first quarter. In the past year, the company’s order backlog has risen 88% to a whopping $176 billion. Again, for context,this is nearly five times sales for 2025. As a result, GE Vernova raised its full-year revenue guidance above analyst estimates to $45.5 billion to $46.5 billion. Related: Super Micro’s 20% surge reveals what AI investors want Another company to watch out for is Bloom Energy (BE), which is expected to post revenue growth of 102.7% and earnings growth of 294.1%, according to the analyst community. Bloom Energy has an order backlog of $20 billion, approximately 10 times its 2025 sales. The order backlog for AI data centers is not expected to be completed for at least three years. As a result, the AI data center boom is expected to continue through 2029, with some of that growth appearing in the results reported this quarter. Energy-related stocks are forecasted to post the strongest earnings, followed by information technology and semiconductors, then material stocks. These three (of 11) S&P 500 sectors are forecasted to post stronger second-quarter earnings vs. the S&P 500, so we remain in a narrow market. Here are some stocks I recommended in each of these three sectors: Energy: Okeanis Eco Tankers (ECO) International Seaways (INSW) Teekay Tankers (TNK) HF Sinclair (DINO) Phillips 66 (PSX) Cenovus Energy (CVE) Suncor Energy (SU) Information Technology (including data center-related and semiconductor stocks): Nvidia (NVDA) Advanced Micro Devices (AMD) Micron Technology (MU) Seagate Technology (STX) Palantir Technologies (PLTR) AppLovin (APP) Bloom Energy (BE) GE Vernova (GEV) Comfort Systems USA (FIX) Quanta Services (PWR) Ciena (CIEN) Materials: Carpenter Technology (CRS) Howmet Aerospace (HWM) The current economic and market environment is the best since 1999, and it would be a shame if investors missed out on the best stock market environment in almost three decades. I expect the incredible earnings market we are now enjoying to persist for months, given the forecasted sales and earnings growth for fundamentally superior stocks. This story was originally published by TheStreet on Jul 23, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

GE Vernova Inc. GEV used its second-quarter earnings call to press a bigger long-term capacity case, arguing that demand in gas power and electrification is broadening faster than near-term earnings noise would suggest. Scott Strazik and Kenneth Parks centered the discussion on backlog, output expansion and cash generation rather than the quarterly earnings per share (EPS) miss. Management raised full-year revenues and free cash flow guidance, outlined a path to 30 gigawatts of annual gas output by 2030 and pointed to data center demand as an expanding revenue opportunity across electrification products. GEV Backlog Keeps Moving Higher Chief executive officer Scott Strazik said that equipment orders more than doubled in the quarter and service orders rose 15%, pushing the total backlog to $176 billion. Strazik added that backlog was up $13 billion sequentially and remains on track to reach $200 billion in 2027. Chief financial officer Kenneth Parks said that second-quarter orders reached $24.2 billion, up 88% year over year, with a book-to-bill ratio of more than 2 times. Equipment backlog climbed to $88 billion, while services backlog also reached $88 billion, helped by Power. GEV reported earnings of $2.47 per share, missing the Zacks Consensus Estimate of $3.17. The company reported revenues of $11.10 billion, which beat the consensus mark of $10.77 billion. The quarter’s central investor message, though, was that backlog growth and cash conversion carried more weight in management’s narrative than the EPS shortfall. GE Vernova Inc. price-consensus-eps-surprise-chart | GE Vernova Inc. Quote GE Vernova Pushes Gas Capacity Higher Strazik said that GE Vernova signed 20 gigawatts of gas power orders and slot reservation agreements in the quarter, lifting total gigawatts under contract from 100 to 116 sequentially. He said that the company now expects at least 125 gigawatts under contract by year-end. Strazik also laid out a more ambitious output plan. After reiterating that GE Vernova is on track for a 20-gigawatt annualized run rate in the third quarter and 24 gigawatts in 2028, the company now sees a capital-efficient path to 30 gigawatts of annual gas output in 2030 using lean improvements, incremental machinery and existing factory space. In Q&A, Strazik said that most of that 2030 capacity will already be sold this year and more than half of 2031 slots should be under contract by year-end. He also tied today’s equipment build-out to future services demand, noting that the growing HA turbine fleet will create a larger outage and maintenance opportunity later in the next decade. GEV Lifts 2026 Revenues and Cash View Parks said that second-quarter free cash flow was $5.1 billion, helped by a $6.4 billion working capital benefit from higher down payments tied to gas slot reservations and stronger electrification orders. Year to date, free cash flow reached roughly $9.9 billion, already more than all of 2025. That strength drove a sharp guidance increase. GE Vernova now expects 2026 revenues of $45.5 billion to $46.5 billion, up from $44.5 billion to $45.5 billion, and free cash flow of $11.5 billion to $12.5 billion, up from $6.5 billion to $7.5 billion. Adjusted EBITDA margin guidance stayed at 12% to 14%. Parks said that the company ended the quarter with about $13 billion of cash after returning $2.5 billion to shareholders in the quarter and about $3.9 billion year to date. He also said that GE Vernova remains committed to an investment-grade balance sheet. GE Vernova Finds a Bigger Data Center Opening Strazik said that electrification booked $2.7 billion of data center orders in the second quarter, bringing the first-half total above $5 billion, more than double the full-year 2025 level. Parks said that segment orders rose 66% year over year to roughly $6.3 billion, with especially strong demand in substations, switchgear and transformers. Management also used the call to widen the discussion beyond today’s product set. Strazik said that GE Vernova’s current data center revenue scope of roughly $300 million per gigawatt could expand by two to three times as products such as medium-voltage uninterruptible power supply blocks and solid-state transformers move toward commercialization. Solid-state transformer orders were framed as a 2027 and beyond story, while medium-voltage UPS products could begin contributing sooner if current customer work advances into orders. GEV Q&A Reinforces Demand Confidence Questions from Deutsche Bank, BofA and Wolfe Research pressed management on whether the gas demand cycle is becoming too front-loaded. Strazik answered by emphasizing geographic breadth, citing activity in the United States, Brazil, Qatar, Taiwan, Saudi Arabia and Mexico, while also pointing to continuing discussions for 2032 and beyond. A Morgan Stanley analyst asked whether 2026 could mark peak gas turbine orders. Strazik declined that framing and instead said GE Vernova sees a clear pathway to continue growing contracted gigawatts through 2027, even as conversion timing will depend on engineering, procurement and construction readiness. The tone in Q&A was notably firm. Management did not retreat from the demand outlook when pushed on industry capacity, labor ramp or project timing, and Parks added that labor investments had been made early enough to support the move from 15 to 20 gigawatts. GE Vernova Stays Focused on Execution The closing message from management was that GE Vernova sees itself operating from a position of strength, with backlog, pricing and customer down payments funding a larger build-out cycle. Strazik repeatedly tied that stance to lean execution, robotics, automation and disciplined capital allocation. Just as important, the company did not portray the quarter as a one-off spike. The call framed current demand as part of a multiyear electricity investment cycle spanning gas power, grid equipment and service revenue tied to the installed base. Zacks Rank and Style Scores Signal Currently, GEV carries a Zacks Rank #2 (Buy), along with a Growth Score of B, a Momentum Score of B, a Value Score of F and a VGM Score of C. Zacks Rank #1 (Strong Buy) and #2 stocks have the strongest near-term earnings revision profile, while A and B Style Scores point to more attractive characteristics within value, growth or momentum disciplines. You can see the complete list of today’s Zacks #1 Rank stocks here. That mix points to stronger growth and momentum characteristics than value appeal right now. The VGM Score of C suggests a more balanced, middle-of-the-pack profile when all three style factors are combined, and the Zacks Rank can change as analysts revise estimates after the just-reported results. 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 GE Vernova Inc. (GEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research