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General Electric Arm Unveils Products for Grid Modernization

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General Electric Company’s (GE - Free Report) Grid Solutions business team unveiled the company’s latest product innovations at this year’s International Council on Large Electric Systems (CIGRE) exhibition. The company noted that these latest developments will offer a more decentralized, decarbonized and digitalized energy landscape for end users. Grid Solutions business is a division of General Electric’s largest business segment — GE Power.

Inside the Headlines

The global energy landscape is going through immense transformation. In sync with this, GE Power’s Grid Solutions team is currently making investments to develop state-of-the-art automation, high-voltage, direct current (HVDC), and digital technologies, in a bid to transform the quality of energy networks globally.

In the past, a simpler grid model transmitted electricity from large generation plants to end users. However, going forward, a power grid is expected to be faster, smarter and include more interoperable solutions for ensuring greater efficiency, resiliency and security.

GE Power’s Grid Solutions team stated that its newly-displayed product innovations will not only alert the existing energy related technologies, but also make the electric grids more efficient.

In this year’s CIGRE, the company rolled out a couple of innovative products and services to back up its existing grid modernization motto. For instance, the company introduced eLumina HVDC Control System — the first HVDC solution in the industry that supports digital-measurement system based on IEC 61850. A new F35 Gas-Insulated Substation has also been unveiled for ensuring more reliable power delivery in wind farm, industrial and urban applications. In addition to these, the company showed its fresh Asset Lifecycle Management Servicesand Intelligent Digital Substations in the exhibition.

General Electric is poised to grow on the back of its strategic restructuring moves, strong international presence and robust end-market sales. However, over the past month, shares of this Zacks Rank #3 (Hold) company have lost 2.9%, as against 0.9% gain recorded by the industry.

 

Generating revenues of roughly $7.6 billion in second-quarter 2018, GE Power is the largest business segment of General Electric in terms of corporate revenues. The company believes weakness in new gas orders, increasing popularity of renewable energy sources, overcapacity, macroeconomic challenges and geopolitical tensions might take a toll on the segment's performances in the quarters ahead, while its cost-reduction actions are anticipated to bring in some relief. Notably, GE Power anticipates meeting the $1-billion target of structural costs reduction in 2018.

Stocks to Consider

Some better-ranked stocks in the same space are listed below:

Federal Signal Corporation (FSS - Free Report) sports a Zacks Rank of 1 (Strong Buy). The company pulled off an average positive earnings surprise of 22.48% over the past four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Carlisle Companies Incorporated (CSL - Free Report) holds a Zacks Rank #2. The company delivered an average positive earnings surprise of 12.85% over the trailing four quarters.

Crane Company (CR - Free Report) also carries a Zacks Rank of 2. The company generated an average positive earnings surprise of 3.03% during the same time frame.

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