2024-05-09 06:02:30 ET
Summary
- General Electric is breaking up its conglomerate into more concentrated segments, including aerospace, healthcare, and power generation.
- GE Vernova has a large backlog in equipment and services, positioning it well to benefit from the increasing demand for power.
- GEV's margin improvement, mix shift toward services, and operational efficiency are expected to drive significant earnings growth in the future.
General Electric ( GE ) is breaking up its conglomerate into more concentrated segments such as aerospace, healthcare (GEHC) and power generation in its new GE Vernova ( GEV ).
The GE Vernova buy thesis
Power demand is one of the key secular trends right now, and the companies that provide incremental power are well positioned. GEV has an enormous backlog in both equipment and services, which should translate to rapidly growing earnings as the company takes key steps to improve margins....
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GE Vernova: Margin Expansion As Power Demand Ramps Up