I Wouldn't Sell GE Vernova, Even After the Wind Business Fell 40%
Key Points
Orders soared for GE Vernova in the second quarter.
The wind business plunged, though, highlighting how strong power and electrification are.
The diversified model should give investors even more confidence in the future.
- 10 stocks we like better than GE Vernova ›
When the former General Electric conglomerate completed the spin-off of its energy business as GE Vernova (NYSE: GEV) in April 2024, its wind component accounted for nearly one-third of revenue. That business has continued to decline since then, but GE Vernova shareholders probably don't mind too much.
Wind orders decreased another 40% year over year in Q2, and the stock has dropped about 15% since that report on July 22. Some of that selling may have been profit-taking, as the stock is still up 40% this year. But I wouldn't sell GE Vernova stock based on that report, or even after that big gain. In fact, the company is very well positioned with its diversified business.
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 »
Image source: The Motley Fool.
Investors can look at the wind business as a bonus now. That's because the company's power and electrification segments are booming. Despite the sharp drop in wind business orders, GE Vernova reported 88% organic order growth overall in the second quarter.
That's why the stock price drop presents an opportunity. GE Vernova is poised to generate significant value. Management took on a manageable amount of debt earlier this year to acquire the remaining 50% stake of ProlecGE, formerly a joint venture with a Mexican industrial group. That company is a major producer of power transformers and electrical equipment essential for the generation, transmission, and distribution of electric power.
Demand is clearly accelerating and driving margin expansion at GE Vernova. While some investors took profits recently, I would instead take a long-term approach and remain a buyer of GE Vernova stock.
Should you buy stock in GE Vernova right now?
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 $437,097!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,355,077!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% 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 September 1, 2026.
Howard Smith 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.
Recommended Articles
