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General Electric (GE) to Offer HA Gas Turbines in South Korea

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General Electric Company’s (GE - Free Report) Power segment recently clinched an order for its state-of-the-art HA — one of the most efficient fleet of gas turbines in the world. The company entered into a deal with Tongyeong Eco Power to provide more than 1 gigawatt of power generation equipment at Tongyeong combined cycle power plant, based in Tongyeong City, South Korea.

Inside the Headlines

Per the deal, General Electric will be responsible for offering two of its advanced 7HA.02 gas turbines at the Tongyeong combined cycle power plant. In addition to the heavy-duty gas turbines, GE will supply two units of Heat Recovery Steam Generator, one unit of STF-D600 steam turbine and three units of H65 generator. The deal also involves an 18-year services agreement between both the companies.

GE’s advanced HA gas turbine technology will bring greater flexibility and efficiency to the plant’s operations required for producing efficient and low-cost energy in South Korea. Notably, the plant’s construction is likely to begin this year with commercial operations expected to commence in 2024. It will cater to the requirements of reliable electricity for more than 1 million homes.

Zacks Rank, Price Performance and Estimate Trend

General Electric, with a $101.4 billion market capitalization, currently sports a Zacks Rank #1 (Strong Buy). The company is poised to gain from its portfolio-restructuring program, expansion in digital business, efforts to deleverage balance sheet and solid liquidity position in the quarters ahead. Moreover, the company’s efforts are on track to reduce the exposure to the GE Capital business.

In the past three months, its share price has increased 69.6% compared with the industry’s growth of 17.7%.

In the past 60 days, the Zacks Consensus Estimate for the company’s bottom line for 2020 has remained stable at 4 cents. The consensus estimate for its earnings for 2021 has gone up from 28 cents to 31 cents on account of four upward estimate revisions versus none downward.

Other Stocks to Consider

Some other top-ranked stocks are Deere & Company (DE - Free Report) , Danaher Corporation (DHR - Free Report) and Raven Industries, Inc. (RAVN - Free Report) . While Deere & Company sports a Zacks Rank #1, Danaher and Raven carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Deere & Company delivered an earnings surprise of 52.55%, on average, in the trailing four quarters.

Danaher delivered an earnings surprise of 17.00%, on average, in the trailing four quarters.

Raven delivered an earnings surprise of 126.84%, on average, in the trailing four quarters.

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