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GE Secures Deal to Launch Saudi Arabia's First Wind Turbine

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General Electric Company (GE - Free Report) recently secured a contract from Saudi Aramco to launch Saudi Arabia's first wind turbine next month. The deal will allow Armaco diversify energy supplies and meet the increasing customer demand.

Based in Dhahran, Saudi Aramco is a leading Saudi Arabian petroleum and natural gas company worth approximately $10 trillion. On completion of the launch, General Electric will provide power to Saudi Aramco's bulk plant in Turaif, northwest Saudi Arabia by Jan 2017. As part of a reform plan called Vision 2030, the company plans to generate 9.5 gigawatts of electricity from renewable energy.

Per the deal, the new wind turbine will generate a maximum power of 2.75 megawatts, sufficient to power around 250 Saudi households. This will enable the company to reduce the burning of diesel for power generation by 18,600 barrels of oil per year.

General Electric expects to overcome weakness in its oil and gas business in the upcoming year.  Notwithstanding the headwinds in the energy market, General Electric outperformed the Zacks categorized Diversified Operations industry with an average return of 7.0% compared with 6.2% of the latter. Also, in the last one year, the company’s revenues have risen considerably.

A couple of months back, General Electric has inked a definitive agreement with Baker Hughes to merge its Oil & Gas business with the latter to form an industry leader with an unrivalled mix of service and equipment capabilities. General Electric will own the majority stake of 62.5% in the new company. With a complimentary portfolio of operating assets and integrated offerings, the new entity will be able to better serve the customers. The transaction will reportedly create the second largest player in the oilfield equipment and services industry and portrays re-conglomeration efforts by General Electric to arrest the dwindling sales of its Oil & Gas business.

We remain impressed with the focused growth initiatives of this Zacks Rank #3 (Hold) stock to improve its revenues. Some better-ranked stocks in the industry include Leucadia National Corporation , Hitachi, Ltd. (HTHIY - Free Report) and Macquarie Infrastructure Corporation . Leucadia and Macquarie both sport a Zacks Rank #1 (Strong Buy), while Hitachi carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Leucadia has a long-term earnings growth expectation of 18% and is currently trading at a forward P/E of 106.6x.

Macquarie has a positive average earnings surprise of 29.6% for the last four quarters, beating estimates twice.

Hitachi has a long-term earnings growth expectation of 13% and has beaten estimates thrice in the trailing four quarters for an average positive earnings surprise of 103.5%.

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