U.S. Markets close in 2 hrs 31 mins

General Electric Arm Clinches Wind Turbine Deals From ENGIE

Zacks Equity Research

General Electric Company’s GE business unit — GE Renewable Energy — recently announced that it has secured contracts from ENGIE North America to provide 180 onshore wind turbines for two of ENGIE’s wind projects. Including the latest deals, GE Renewable Energy has successfully clinched contracts for 885 MW of new wind turbines from ENGIE over the past year.

Per the agreements, GE Renewable Energy will be responsible for delivering 88 units of the 2.8-127 turbine for ENGIE’s King Plains wind project in Oklahoma, and 92 units of the 2.7-116 turbine for the Triple H Wind project’s first phase in South Dakota.

The construction of the projects is already underway, with both likely to be operational in the second half of next year. The company’s advanced 2 MW turbines will help ENGIE in providing clean and renewable energy in Oklahoma and South Dakota.

It’s worth mentioning here that, in 2018, the company supplied more than 3 GW of turbine capacity in the United States, accounting for 40% of total onshore wind additions in the country.

Our Take

General Electric intends to become more competent by focusing on core businesses. In June 2018, it rolled out a business portfolio restructuring program to become a high-tech industrial company focused on Power, Aviation and Renewable Energy. Although the company is working toward improving operations in the Power segment, persistent challenges in the segment remain a concern.

In the past three months, the Zacks Rank #3 (Hold) company’s share price has increased 40.9% compared with 14.4% growth recorded by the industry.

Stocks to Consider

Some better-ranked stocks from the same space are Carlisle Companies Incorporated CSL, ITT Inc. ITT and Macquarie Infrastructure Company MIC. All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Carlisle surpassed estimates in each of the preceding four quarters, the average positive earnings surprise being 18.58%.

ITT outpaced estimates in each of the preceding four quarters, the average positive earnings surprise being 7.85%.

Macquarie outpaced estimates twice in the preceding four quarters, the average positive earnings surprise being 5.34%.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Macquarie Infrastructure Company (MIC) : Free Stock Analysis Report
Carlisle Companies Incorporated (CSL) : Free Stock Analysis Report
General Electric Company (GE) : Free Stock Analysis Report
ITT Inc. (ITT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research