GE Vernova: Reasonable Long-Term Buy on Profit Margin Expansion

3 days ago

"So it's not nearly as cheap as it was. Uh, yeah, to say the least. When we did the initial deep dive last June or July and called it out as a top energy grid, data center power idea. It was obviously mispriced after getting spun off of leftover GE Aerospace. So that cheapness is gone, but thanks to the profit margin expansion, the use of the net cash balance to make some key acquisitions and integrations in that electrification business, this still could be a reasonable buy for the long term. This is one we still like, especially for those of you that are still looking for big industrialist companies to incorporate into your portfolio. Looking for some way to invest in the power grid data center, power, all that good stuff. We still like GEV here."

The speaker outlines GE Vernova's evolving growth strategy driven by profit margin expansion through key acquisitions and integration efforts in its electrification business. Despite a higher valuation compared to its earlier mispricing, the company is positioned as a reasonable long-term buy due to its strategic use of net cash and margin improvements, making it an attractive play for investors interested in industrial and energy grid opportunities.

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