General Electric Gears Up For Vernova Spin-Off Amid GEHC Stock Surge

While General Electric Co GE displays strength in both the military and the commercial space, an impending GE Vernova spin-off is key to investor optimism. Another wild card is the GEHC stock.

Last month, the company announced that it plans to spin off GE Vernova and launch GE Aerospace in the beginning of the second quarter of 2024. GE Vernova will be listed on the New York Stock Exchange under the ticker symbol “GEV” after the planned spin-off.

GE Vernova, has signed a memorandum of understanding with Next Hydrogen Solutions Inc. for green hydrogen production.

Related: Cleaner Future – GE Vernova Inks MoU With Next Hydrogen For Green Hydrogen Production

Expect GE Aerospace to continue under the existing GE stock listing. Accordingly, GE eventually would be “creating three independent, investment-grade industry leaders”, per GE Chairman and CEO H. Lawrence Culp, Jr. by second-quarter (Q2) of 2024.

General Electric Catalysts

General Electric is in a good position to benefit from industry trends and valuations through the spin-off. The company’s emphasis on aerospace is likely to contribute significantly to long-term growth. With its trajectory of EPS and revenue beat continuing for the third quarter in a row, GE looks poised for growth and more earnings surprises.

In addition, the company owns the Renewables and Power division of GE Vernova, which, despite present challenges, has the potential to grow into a profitable enterprise. Investors in GE Vernova will have the option to retain their shares following the division’s separation from General Electric.

GE HealthCare Technologies Inc GEHC has growing margins and potential for continued strong organic growth. The company recently won the FDA nod for its remote scanning solution.

The multinational medical technology company was spun-off from General Electric on January 4, 2023, with GE retaining 13.5%. On a year-to-date basis, the stock is up 31.62%. GEHC stock is up over 10% since it beat EPS and revenue estimates on Oct. 31.

Now Read: Citi Is Bullish On 125-Year-Old GE HealthCare Stock