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General Electric's (GE) Unit Clinches Turbine Deal in India

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General Electric Company’s (GE - Free Report) unit, GE Vernova (combined operations of GE Digital, Renewable Energy and GE Power), has secured a deal from O2 Power Private Limited to deliver, install and commission 36 units of workhorse 2.7-132 onshore wind turbines. The turbine units will be installed at a 97 MW wind power project in Maharashtra, India.

The wind power facility is planned to be commissioned in phases with full commissioning in the first half of 2025. Through this deal, many industries and commercial foundations will be able to avail renewable energy. This collaboration will also support India’s target to reach 500 gigawatt (GW) of renewable energy capacity by 2030. Including the latest one, General Electric has received 3.5 GW of orders to date for its Indian-made 2.7-132 wind turbines.

Lately, General Electric has received a series of deals, which are likely to drive its growth. In August this year, GE secured two orders from Royal Golden Eagle Group’s subsidiary East Asia Power (Yangjiang) Co., Ltd. and Beijing Energy International Holding Co., Ltd. to deliver four units of 6F.03 gas turbines.

Also, in July 2023, the company secured a deal from Hafslund Eco to supply rotor poles for Norway-based Aurland 1 hydropower plant’s 3x 280 MW / 300 MVA water-cooled generators.

Strong Segmental Performance

General Electric is benefiting from the strong performance of the Aerospace segment due to robust demand and solid execution in commercial engines and services. After months of softness, a rebound in demand in the Power segment augurs well for General Electric. Strength in GE Gas Power’s heavy-duty gas turbines is aiding the Power segment. With higher equipment demand at Grid and Onshore Wind in North America, signs of progress in the Renewables segment are encouraging.

Price Performance

In the past year, the GE stock has increased 40.2% against the industry’s 10.5% decrease.

Zacks Investment Research
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Zacks Rank & Other Stocks to Consider

General Electric currently carries a Zacks Rank #2 (Buy). Some other top-ranked companies have been discussed below.

Federal Signal Corporation (FSS - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

FSS delivered a trailing four-quarter average earnings surprise of 8.1%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2023 earnings has increased 3.3%. The stock has risen 39.5% in the past year.

ITT Inc. (ITT - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 8%.

The consensus estimate for ITT’s 2023 earnings has increased 2% in the past 60 days. Shares of ITT have jumped 27.8% in the past year.

A. O. Smith Corporation (AOS - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 14%.

In the past 60 days, the consensus estimate for A. O. Smith’s 2023 earnings has improved 5%. The stock has risen 24.9% in the past year.

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