This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

GE Energy Strength: How To Play It

NEW YORK ( TheStreet) -- General Electric (GE - Get Report)'s energy infrastructure unit was stronger than many analysts expected in the first quarter, suggesting several stocks that play in the same space may be worth a look.

Energy infrastructure turned in revenues of $8.66 billion, better than four of six analyst estimates I reviewed, and also better than the average of their estimates, which was $8.59 billion.

GE's energy infrastructure business is massive, including everything from oil and gas and coal to wind, water. GE said electricity demand was still weak in developed markets, though it showed signs of improvement.

Competitors include SPX Corp. (SPW), ABB Ltd (ABB - Get Report) and, Alstom SA (ALO), Siemens AG (SI), Vestas and Areva (CEI).

Among these, only Vestas and Alstom were up in early trading Friday. Vestas, a maker of wind turbines, may not be the best way to play the GE results, as GE wind orders of $1.2 billion were down 28% versus the first quarter of last year. Alstom, a more broadly diversified power generation company that also focuses on rail transport, should receive many of the same benefits seen by GE's businesses.

The most interesting play, however, may be Areva, a French company whose shares were down 1.7% in early trading Friday. Areva has a big nuclear power focus, but also has several other businesses including hydrogen power, where GE showed strength in the quarter.

Oil and gas was another strong performer for GE, with $2 billion worth of orders up 8% versus a year ago. That suggests Schlumberger (SLB - Get Report), which was down Friday morning, merits checking out.

-- Written by Dan Freed in New York.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SI $0.00 0.00%
SPW $0.00 0.00%
ABB $20.54 -0.72%
GE $29.89 -0.60%
SLB $75.40 -0.44%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs