Nuclear power is a fantastic alternative to coal and natural gas, especially when you’re talking about supplying large areas with electricity. Finding the necessary fuel, however, can be a bit of a challenge. But multinational conglomerate General Electric (NYSE:GE) may have addressed that, and a recent approval is drawing analyst praise and investor cash. GE is up over 2% in Wednesday afternoon’s trading.
GE recently landed some praise for its Vernova Nuclear Fuel operation after receiving approval from the Nuclear Regulatory Commission in the United States to create and ship higher enrichment fuel. Further, GE is permitted to analyze its performance in the field. Such a move, according to GE, will allow for better operation and, ultimately, “…the next generation of reactor technology.” Jim Cramer, a notorious CNBC commentator, noted that GE’s rise is “…mainly due to demand for its aircraft engines,” but that investors “…love any way to be able to make nuclear fuel work.”
GE Still on the Rise
GE has made a lot of moves lately. Just recently, the Vernova arm—rather, its own Gas Power arm—started up a fuel conversion project in Saudi Arabia that will shift them from liquid fuel to natural gas, boosting efficiency and lowering consumption. And, in a move that may not be so sweeping, GE recently brought an indoor smoker to the Consumer Electronics Show in Las Vegas back in January that allowed users to smoke meat with wood on a device that fits on a countertop. There’s a lot more than aircraft engines going on at GE, and that’s likely to encourage investors. Which it seems to have already.
Is GE Stock a Buy or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GE stock based on 11 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 71.94% rally in its share price over the past year, the average GE price target of $149.08 per share implies 2.61% upside potential.
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