Amid a 'slightly brighter demand outlook' for short cycle industrial goods, the U.S. multi-industry group saw adjustments in anticipation of 2025. It is suggested that short cycle industrial goods will likely be a principal area of acceleration by 2025. Current valuations are observed to be at or near all-time highs across most stocks, which is attributed to the record-high earnings.

Expectations are elevated regarding new long-term financial targets expected to be issued at an upcoming investor event. When combined with management's usual approach of setting conservative targets, there could be potential disappointment. However, it is expected that the commentary will remain very optimistic, as it continues to benefit significantly from the U.S. electric load growth theme. This optimism is also reflected in higher trading multiples observed across peers.

GE Vernova seems to be primed to gain from a surge in investment in electricity supply following a successful revamp across most of its segments. Analysts predict that margin expansion could lead to earnings surpassing market expectations in 2026 and subsequent years, with the investor update on December 10 anticipated to be a potential trigger for positive revisions.