GE Stock Marks A Milestone On The Path To Vernova, A Bet On Energy Transition| Investor’s Business Daily

General Electric (GE) will soon emerge as an aerospace and defense company, shedding its diversified conglomerate past. Is GE stock a buy?

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General Electric To Split In Two

GE held an investor day for the upcoming GE Vernova Wednesday. “Today is a tremendous milestone” for GE Vernova, which will house the gas power and renewable energy business, GE CEO Larry Culp said in a news release.

After a challenging few years, GE Vernova is expected to deliver “significant free cash flow growth,” Culp added. He sees the new company “leading the energy transition” to a lower carbon future.

The spin-off of GE Vernova is set for April 2. It will trade under the ticker symbol GEV.

The spinoff will also allow the “new GE,” GE Aerospace, to emerge as a stand-alone company. The GE Aerospace investor day is set for Thursday.

Launching on April 2, GE Aerospace will continue to use the GE stock ticker. And General Electric will complete its multi-year transformation from industrial conglomerate to aerospace pure play.

Shareholders will receive one share of GE Vernova for every four shares of GE stock, the company said.

GE’s health care spinoff, GE HealthCare Technologies (GEHC), debuted last January.

General Electric had announced a three-way breakup — into independent aviation, health care and energy companies — in 2021. Prior to that, the icon of American manufacturing shed a series of assets, from lighting to locomotives.

GE Stock: Another Day, Another High

Shares of General Electric are extended from a 132.50 buy point off a three-weeks-tight pattern. That means shares are not within buy range. The stock is up 34% from an earlier, November breakout past a flat-base entry, according to MarketSmith pattern recognition.

GE stock rose Wednesday after a fresh 52-week high Tuesday. Share are above all the short- and long-term moving averages. In fact, the soon-to-be aerospace stock sits at its highest level since July 2017, shortly before the company signaled a breakup…