GE's HA Turbines & Services Take the Game a Notch Higher

Recently, General Electric CompanyGE showcased the accomplishments of the company's industry-popular HA gas turbine and its associated services portfolio. This implies that the company is uniquely placed to profitably and efficiently help gas-power producers meet the rising demand for electricity.

General Electric's breakthrough heavy-duty gas turbine - HA - was launched in 2016. Since then, the product has made two world records for efficiency across 60- and 50-hertz segments. So far, it has achieved more than 118,000 operating hours and is currently recognized as the fastest growing fleet of gas turbines in the market. Notably, around 76 units of HA are offered to nearly 25 customers across 15 countries.

Per the International Energy Agency, the global energy demand will likely be up 30% through 2040. This will spur demand for natural gas and other renewable sources of energy, and even call for higher energy efficiency improvements. Against this backdrop, General Electric's HA technology will likely secure sturdy response from end-users, as it offers extraordinary levels of efficiency in energy emission.

In addition to this, General Electric Energy Financial Services and its partner, Competitive Power Ventures (CPV), recently announced that the CPV Towantic Energy Center in Oxford has commenced its commercial operations. The new facility uses dual 7HA.01 gas turbine and its linked engineered equipment package. This 805-megawatt combined-cycle plant supplies power to more than 800,000 homes in the United States. Also, operations commenced at other GE facilities, including the Sewaren 7 and Sergipe.

Furthermore, lately, General Electric Power and Vattenfall Warme Berlin AG jointly rolled out the MXL2 - the most advanced solution for General Electric's GT13E2 gas turbines. This technology, which will save approximately $2 million in fuel in gas plants, has the potential to add up nearly $3 million revenues on an annualized basis.

General Electric is poised for long-term growth backed by improved performances in the emerging markets, including India and China. In order to focus more on its core business activities, the company has increased its investments in key industrial businesses through restructuring, state-of-the-art technology and research & development initiatives. It also generates solid free cash flow, which gives management an opportunity to invest in product innovations, acquisitions and business development.

In addition, General Electric's stringent cost-cutting measures are likely to boost its profitability. However, on a quarter-to-date basis, shares of this Zacks Rank #3 (Hold) company have lost 1.3%, as against 0.1% growth recorded by the industry .

Stocks to Consider

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Crane Company CR carries a Zacks Rank #2 (Buy). The company has pulled off an average positive earnings surprise of 2.13% in the last four quarters. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .

Federal Signal Corporation FSS also carries a Zacks Rank of 2. The company came up with an average positive earnings surprise of 16.07%, over the trailing four quarters.

Honeywell International Inc. HON is another Zacks #2 Ranked company. The stock delivered an average positive earnings surprise of 1.49%, in the past four quarters.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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