GE Vernova Inc Receives Mixed Ratings from Guru Strategies

A recent report reveals that GE Vernova Inc's stock shows a 48% rating based on fundamental analysis under the Price/Sales Investor model. Despite some strengths, critical failures in EPS growth and profit margins raise concerns for potential investors.

Date: 01-10-2024

AI Rating: 4

According to the analysis in the report, GE Vernova Inc (GEV) has received a rating of 48% using the Price/Sales Investor model developed by Kenneth Fisher. This suggests that while the stock does exhibit certain positive attributes, it lacks several critical factors that would typically indicate a stronger investment opportunity.

Examining specific metrics, the report identifies the following points regarding GEV:

Long-Term EPS Growth Rate: The report indicates a FAIL on the long-term EPS growth rate, signaling potential challenges in profitability and growth expectations.
Free Cash Flow per Share: A FAIL was also noted for free cash flow per share, indicating difficulties in generating cash needed for operational and growth initiatives.
Net Profit Margin: The analysis points to a FAIL in the three-year average net profit margin, which could reflect inefficiencies in managing costs relative to revenue.

Despite these failures, GEV did pass the Total Debt/Equity Ratio and Price/Research Ratio tests, which are positive indicators; however, they may not be sufficient to offset the concerns highlighted by the failures listed above.

Overall, while GEV has its strengths in certain areas, the critical failures in EPS growth, free cash flow, and profit margins suggest caution for potential investors. These factors could lead to a decrease in stock appeal, affecting its price negatively in the future.

Stocks: GEV