GE Vernova: This Brand New Energy Player Could Be the 1 Stock You'll Wish You'd Bought in 2026
Key Points
Orders are pouring in, and the backlog of business is growing.
GE Vernova is perfectly positioned to capitalize on the increasing demand for electrification.
Wall Street analysts have mixed opinions after the stock has surged so much.
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GE Vernova (NYSE: GEV) just celebrated its second birthday on April 2, and shareholders are the ones who got a gift. Shares of the energy division spun off from General Electric have rocketed 775% over the past two years.
Investors should never get too caught up in past results, though. So the question is whether the company's future looks bright enough to buy GE Vernova stock now. Based on the company's most recent quarterly update, it looks like the answer is yes.
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Long-cycle power demand
It's no secret that electric power demand has been increasing, largely due to growth in data center construction. GE Vernova helped prove that point by reporting that its electrification segment booked more equipment orders in the first quarter than it did in all of 2025.
Orders soared across the board. Its power segment saw organic orders increase by 59%, electrification by 86%, and the wind segment by 85%. Onshore projects drove wind energy equipment demand, but it was coming off a low base, and the company does still expect a decrease in 2026 revenue in that segment.
Wall Street's take
With shares having risen so much, investors want to know whether the stock price already reflects all the order growth. Wall Street had mixed reactions to the earnings report.
Jefferies analyst Julien Dumoulin-Smith increased his price target for GE Vernova stock from $965 to $1,350 per share. He believes that current earnings projections remain too conservative after seeing the company's Q1 report. His new price target represents another 20% of upside from recent levels.
Other opinions exist, too, though. BNP Paribas downgraded the stock from a "buy" to a "hold" recommendation after the report and strong recent share price growth, according to Barron's.
Management confidence
A decision to buy now would reflect confidence that the company can not only continue growing orders but also satisfy them. CEO Scott Strazik certainly seems to think that's the case. In the conference call for investors, he stated:
The growth is just starting, and there is no company better positioned to serve and transform the global electricity system than GE Vernova. Since our spin, we launched with a $116 billion backlog. We have grown this backlog to $163 billion with an 80% increase in our equipment backlog at considerably better margins.
The stand-alone company may be new, but Strazik is a veteran. He was named CEO of GE's Gas Power division in 2018, and later broadened his responsibilities to lead the GE Power businesses. Investors who could use more exposure to the growing domestic energy segment should still look at adding GE Vernova to a portfolio, even after the stock has surged higher.
Should you buy stock in GE Vernova right now?
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Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Vernova and Jefferies Financial Group. The Motley Fool has a disclosure policy.
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