General Electric (GE) Inks Deal to Supply Gas Turbine to Enova
General Electric Company GE recently announced that its business unit GE Gas Power secured a deal from Brazil’s largest private natural gas operator Eneva to supply a 7HA.02 gas turbine for the latter’s Azulão reserve power plant.
Per the deal, GE will supply the GE 7HA.02 gas turbine to Eneva’s new 50-Megawatt (MW) Azulão power plant and will power an H65 generator. This will enable Brazil to manage its renewable-rich grid and its growing utilization of non-dispatchable energy sources. The power plant will support growth of intermittent power from solar, hydro (without reservoirs) and wind resources, which will likely be beneficial to the country generating nearly 70% of its power from renewable energy sources.
Construction of the new reserve power plant near Manaus will start in late 2022. The facility will likely commence its commercial operations by 2026. The available installed capacity will help the National Grid Operator ensure grid stability with high efficiency. Also, the average electricity cost in the country will be reduced by the increased power availability in the open electricity marketplace.
GE stands to benefit from strong performances of its Aerospace and Healthcare segments owing to increased demand in the quarters ahead. Also, its investments in productivity and innovation should fuel growth going forward.
The Zacks Consensus Estimate for GE’s 2022 earnings per share is currently pegged at $2.71, suggesting growth of 27.8% from the year-ago reported figure. The same for 2023 stands at $4.43, indicating growth of 63.5% from the prior-year reported number.
Price Performance
Shares of General Electric have gained 8.1% against the 0.7% decline of its industry in the past three months.
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Zacks Rank and Stocks to Consider
General Electric, with a $74.5-billion market capitalization, currently carries a Zacks Rank #3 (Hold). Some better-ranked companies are discussed below:
Enerpac Tool Group Corp. EPAC presently sports a Zacks Rank #1. EPAC delivered a trailing four-quarter earnings surprise of 3.4%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks.
EPAC’s earnings estimates have increased 9.1% for fiscal 2023 (ended August 2023) in the past 60 days. Its shares have gained 17.4% in the past three months.
Carlisle Companies CSL currently has a Zacks Rank #2 (Buy) and a trailing four-quarter earnings surprise of 28%, on average.
In the past 60 days, Carlisle’s earnings estimates have increased 0.1% for 2022. The stock has rallied 17.3% in the past three months.
IDEX Corporation IEX presently has a Zacks Rank of 2. IEX’s earnings surprise in the last four quarters was 4.6%, on average.
In the past 60 days, IDEX’s earnings estimates have increased 0.1% for 2022. The stock has rallied 12.4% in the past three months.
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