Since spinning off and becoming its own company in 2024, GE Vernova (GEV 1.70%) has grown explosively. It's a global leader in energy infrastructure with a diversified portfolio. As energy demand becomes increasingly insatiable, GE Vernova's growth story is compelling. But has the stock reached unsustainable levels, or should investors increase their position? Let's evaluate whether GE Vernova is a buy, sell, or hold.
NYSE: GEV
Key Data Points
GE Vernova's business is soaring
GE Vernova's growth in 2025 was impressive. For the 2025 year, orders were up 34%. The company's backlog grew a whopping $31.2 billion, and revenue increased 9%. GE Vernova's outlook is so strong that the company raised its 2026 guidance and outlook by 2028.
GE Vernova also remains friendly to shareholders as its strong free cash flow (FCF) position has enabled the company to double its quarterly dividend from $0.25 per share to $0.50 per share in 2026. The company also authorized a share buyback increase from $6 billion to $10 billion. All of this is positive news for investors.
Electrification and power at a hefty price
There is a case to be made that the stock is currently overvalued. First, shares of GE Vernova skyrocketed in the past 12 months, shooting up more than 170%. Second, the forward price-to-earnings (P/E) ratio is now over 50, which is tremendously high for a company such as Vernova compared to its peers.
Wind is mostly a disappointing bluster
Then there's the wind segment. GE Vernova's wind business is a light breeze compared to the hurricane force of its power and electrification counterparts. In 2025, Vernova's wind revenue decreased 6%. There's a lot of uncertainty in offshore wind, both with policy changes and project delays due to federal licensing holdups. While the company is focusing on the growth of its other business lines, wind remains a problem.
Image source: Getty Images.
Should you buy, sell, or hold?
The analyst consensus is essentially that GE Vernova remains a buy. For investors already long GE Vernova, there's absolutely no reason to consider the stock a sell. The growth trajectory of the company is promising, particularly with more than $30 billion in future revenue visibility.
For investors who don't own GE Vernova but are looking to get in, the current valuation isn't super attractive. I'd look to buy any dip, or you could make peace with the premium price, knowing that GE Vernova over the long term is going to reward you.
Although utility and energy companies are often associated with value investing, GE Vernova's dividend yield is only about 0.23%. I think the growth side of the company is far more compelling and appealing to investors seeking long-term stock appreciation.
