Key Takeaways
- GE Vernova shares rose 6% on Nov. 3 after Eaton’s record third-quarter orders and a bullish Bernstein note on data centers.
- Eaton’s record orders back up GE Vernova’s own 96% organic order growth.
- Bernstein expects developers to pay more for power where politics bite but keep building, and Vertiv rose too.
- Even after Tuesday’s jump, GE Vernova trades well below its past year’s average forward P/E.
GE Vernova (GEV) stock jumped 6% on Tuesday, Nov. 3. Before the open, Eaton (ETN) reported a record third quarter. After Monday’s close, Bernstein said the political threat to US data-center construction is smaller than the market thinks, and named GE Vernova a pick.
Another Bernstein pick, Vertiv (VRT), rose 5%. Vistra (VST) gained 4% after rival Talen Energy guided 2027 adjusted EBITDA about 26% higher.
Eaton’s orders back up GE Vernova’s
Eaton shares rose 7%. Sales rose 28% to a record $8.9 billion, and management raised its full-year organic growth guidance to 13-15%. Twelve-month rolling average organic orders rose 39% in Electrical Americas and 51% in Electrical Global, with order dollars at records in both.
That fits GE Vernova’s third quarter, reported Oct. 28, when orders rose 96% organically to $29.3 billion. Orders like that at two of the biggest grid suppliers don’t point to demand fading soon.
Analysts expect GE Vernova’s normalized EPS to more than double from 2026 to 2028:
Nothing in Eaton’s quarter gives them a reason to cut.
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A bigger power bill still buys turbines
Where the politics bite, Bernstein expects developers to pay a bigger share of electricity and grid-upgrade costs, and sees that cost as relatively immaterial. Developers still have to buy the turbines and transformers. Plus, management said on its second-quarter call that only about 20% of GE Vernova’s contracted gas gigawatts serve data centers.
Vertiv’s power and cooling gear is in the same boat. Its third-quarter revenue rose 61% to $4.31 billion.
Vistra is on the other side of that power bill. Its adjusted EBITDA from ongoing operations rose more than 30% to $1.77 billion in the second quarter. Its Nov. 6 report will show how much data-center demand is reaching its results.
The selloff went too far
GE Vernova traded at 37x forward earnings at Monday’s close. Its average over the past year was 55x:
At Tuesday’s close, it was about 40x, still near the bottom of that range. With orders this strong, the slide looks overdone.
The election then delivered the result Bernstein said would hit these stocks first. Democrats won both chambers of Congress, and Texas elected Gina Hinojosa, who pledged to pause new data-center permits until the state passes rules for them. Data-center stocks slipped in premarket trading on Nov. 4, Reuters reported. The next real check is whether contracted gas reaches at least 130 gigawatts by year-end, as management expects.
So what is GE Vernova stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
