By GE Vernova’s stock has slipped into a bear market this year, falling from its year-to-date high of $1,193 to $938. The retreat has erased part of the gains made earlier in the year, when the stock was one of Wall Street’s top performers. Attention now turns to the company’s upcoming earnings report, where investors will scrutinize revenue and backlog growth.
GE Vernova has dropped amid AI jitters and valuation concerns
GEV stock has slumped more than 20% from its year-high as investors book profits after its strong rally. At its peak this year, the stock was up over 960% from its 2024 low.
The ongoing retreat has also coincided with the sell-off in other industrial companies like Caterpillar and GE Aerospace.
In addition to profit-taking, investors are concerned about the company’s valuation, which has soared in recent years. Seeking Alpha data shows that, despite the recent sell-off, the company has a forward non-GAAP price-to-earnings ratio of 66.19, higher than the sector median of 19.
On a GAAP basis, the company has a forward PE ratio of 33, also higher than the sector median of 21. Most notably, these numbers are significantly higher than the S&P 500 Index’s average of 19.1. They are also higher than other faster-growing companies in the AI industry like Micron and Nvidia. As such, the ongoing pullback is a sign that the company is going through a valuation reset.
GE Vernova’s business is firing on all cylinders
Despite the ongoing weakness in its stock, all signs are that GE Vernova’s business is firing on all cylinders as demand for its products soars.
The most recent quarterly results showed that its backlog jumped to $176 billion in Q2’26 from $129 billion in the same period last year. The CEO expects that this backlog will jump to $200 billion early next year.
GE Vernova’s revenue rose 22% in the quarter to $11.1 billion, while adjusted EBITDA increased to $1.2 billion. Most of the company’s orders came from its power division, where orders jumped 134% to $16.7 billion. The electrification business is also thriving, with orders rising 66% to $6.3 billion.
Analysts expect the company’s business to continue rising. The upcoming results, which will be released on October 28, are expected to show that its revenue rose by 20.3% to $12 billion. A 20% increase in revenue is a big achievement for a company in the industrial sector.
This view explains why analysts are bullish about its business. Susquehanna sees the stock rising to $1,270, while Guggenheim expects it to jump to $1,450. Other top analysts, including those from Evercore, Jefferies, and Bernstein, expect it to jump to $1,100 and above.
GE Vernova stock analysis
GEV stock chart | Source: TradingView
The weekly chart shows that the GEV share price has jumped from a low of $114.68 in 2024 to a record high of $1,193 in July. This surge has not been in a straight line as the stock has had some major pullbacks. For example, it dropped from $444 in January 2025 to a low of $251 in April of that year.
It also dropped from $673 in July to a low of $527 in November. Most recently, the stock has pulled back from $1,193 to the current $931. This pullback is part of the bullish flag pattern.
Therefore, the stock will likely resume the upward trend, potentially to the all-time high of $1,193. A move above that level will point to more gains, potentially to the psychological level of $1,250.
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