Pepsico, Microsoft among market cap stock movers on Wednesday

GE Vernova Inc. (GEV) is currently at $709.82, up $84.53 or 13.52%

• Would be new all-time closing high (Based on available data back to March 27, 2024)
• Would be the first new record closing high since Aug. 6, 2025, when it closed at $664.55
• On pace for largest percent increase since July 23, 2025, when it rose 14.58%
• Currently up six of the past seven days
• Currently up two consecutive days; up 14.14% over this period
• Best two day stretch since the two days ending April 9, 2025, when it rose 14.24%
• Up 18.35% month-to-date
• Up 115.8% year-to-date; on pace for best year on record (Based on available data back to March 27, 2024)
• Up 106.46% from 52 weeks ago (Dec. 11, 2024), when it closed at $343.80
• Would be a new 52-week closing high
• Up 162.77% from its 52-week closing low of $270.13 on March 10, 2025
• Traded as high as $725.00; new all-time intraday high (Based on available data back to March 27, 2024)
• Up 15.94% at today's intraday high; largest intraday percent increase since April 9, 2025, when it rose as much as 16.18%
• Best performer in the S&P 500 today

All data as of 10:10:01 AM ET

Source: Dow Jones Market Data, FactSet

Al Root

When it comes to GE Vernova stock, investors believe. Boy, do they. JPMorgan believes so much that it raised its price target to $1,000.

Wall Street success, of course, is a little different than business success. The latter can involve consistent profitability and growth in an attractive market. The former, however, starts with investors believing that guidance and numbers will show consistent improvement.

Wall Street success shows up, of course, in a stock chart and valuation ratios too. GE Vernova, in its brief history as a stand-alone company, is building a legacy of both business and Wall Street success.

Coming into Wednesday trading, GE Vernova stock was 90% year to date, but shares were down 3% over the past three months. Investors were a little worried that the stock had rushed past fundamental improvement.

The power equipment technology company met with investors on Tuesday night to discuss 2026 and longer term goals. The company nailed the gathering. Guidance for 2028, implying Ebitda of more than 10 billion, beat already elevated expectations. What's more, the dividend was doubled, reflecting management's confidence in the strength of the business now and in the future.

GE Vernova stock was up 15.2% at $720.02, a new 52-week high, while the S&P 500 and Dow Jones Industrial Average were down 0.2%.

And no analyst seemed more pleased than JPMorgan's Mark Strouse, who increased his price target on Buy-rated GE Vernova stock to $1,000, from $740, anew high-water mark on the Street, according to FactSet.

Fourth quarter "order activity significantly exceeded expectations, and the company continues to test higher pricing on each deal," wrote in a Wednesday report. "The [grid] electrification business also positively surprised, with backlog expected to double by 2028, after already doubling from year-end 2023 levels."

Not everyone came away as bullish as Strouse. Guggenheim analyst Joseph Osha said there was "some upside" to his valuation model, but the good news was "already in the stock." He rates shares Hold and doesn't have a price target for the stock.

At current levels, GE Vernova trades for about 31 times estimated Ebitda expected over the coming 12 months. That is up from about 17 times at the time of the spinoff from GE Aerospace in early 2024. GE Aerospace stock trades for about 27 times Ebitda. Industrial companies in the Russell 3000 trade for about 22 times Ebitda.

Despite a higher than average valuation, GE Vernova stock is still popular on the Street. Overall, 68% of analysts covering GE Vernova shares rate them Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. The average analyst price target for GE Vernova stock is about $724 a share, up $33 since the analyst meeting on Wednesday.

The expectations were high for GE Vernova. It's safe to say the company met then, and then some.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

By WSJ Staff

Shares of GE Vernova rose after the energy company raised its outlook and doubled its dividend, as it expects to gain further momentum from growing electricity demand.

• The maker of gas turbines and other power equipment, which has been riding the AI boom, now sees revenue hitting $52 billion by 2028. That's up from a previous forecast of $45 billion.
• The company hiked its free cash flow guidance for this year to $3.5 billion to $4 billion.
• It also raised its share repurchase authorization to $10 billion.

Analysts said the guidance was better than expected, and could still be conservative given the company's history of beating its targets.

GE Vernova also said it would double its quarterly dividend to 50 cents a share, payable in the first quarter.

In recent trading, shares in the GE spinoff were up around 13%.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).