The week's story · Week of 26 Oct

Power orders boom, but lately the money went to utilities

What is the Power & Grid theme?

01
The surprise
Orders for power gear are surging, but the companies making it have slid.
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ABB said its US orders rose 82%, and GE Vernova drew fresh AI orders, yet both shares fell over the past week.
- 2026-10-21 [ABBN.SW]: ABB says its US orders rose 82% in its third-quarter report. Why it matters: Orders are what electrical equipment makers build and ship from later, so a jump in US demand points to strong spending on grid and power gear. The read-across runs to other equipment suppliers and to the contractors who install it.
- 2026-10-26 [GEV]: GE Vernova drew fresh AI power orders and new power supply deals. Why it matters: Orders for gas turbines and related equipment show AI power demand is turning into real equipment backlog for the makers of generation hardware. The stock has weakened over the week even with the order news, so the market is weighing how much good news is already reflected. GE Vernova reports earnings on 2026-10-28.
- ABBABBN.SW: down 10.4% over 7 days
- GE VernovaGEV: down 11.5% over 7 days
02
Where the money went
This past month, the money went to slow, regulated utilities at the chain's far end.
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The theme's five best stocks were all US utilities, while no turbine, equipment or grid builder stock is in an uptrend.
- US utilities: typical revenue growth +1.1%
- Grid builders: 0 of 4 in an uptrend, 0%
03
What is priced in
Even after the slide, turbine makers cost far more than utilities against expected profit.
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The typical turbine stock is priced at 25.6 times next year's expected profit, with factories near full and orders booked years ahead.
- Turbines: typical price against next year's expected earnings 25.6x
- US utilities: typical price against next year's expected earnings 17.2x
- UK and Europe utilities: typical price against next year's expected earnings 12.5x
04
What could break it
The utilities' lead rests on regulators, and Virginia's governor wants a six-year rate freeze.
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He wants it before approving the Dominion and NextEra merger, and a freeze would cap what they charge while they fund new building.
- 2026-10-21 [D, NEE]: Virginia's governor wants a six-year rate freeze before approving the Dominion and NextEra merger. Why it matters: A rate freeze would cap what the combined utility can charge customers while it funds new building, which squeezes returns on that spending. It sets a marker for how regulators may treat large utility mergers. Dominion also fell below a key long-term trend line this past week, while NextEra reports earnings on 2026-10-21.
05
What happens next
Results from GE Vernova and Quanta Services this week test whether orders become profit.
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Watch GE Vernova's order book on 28 October and the US rate decision, which sets what utilities pay to borrow.
- 2026-10-28: GE Vernova (GEV, Turbines) reports earnings.
- 2026-10-29: Quanta Services (PWR, Grid builders) reports earnings.
- 2026-10-27: FOMC meeting. A US rate decision. Utilities borrow heavily to build plants and lines, so the rate path sets what building costs them, and their shares often trade like bonds. Source

Where it leads

Electrical equipment and Turbines

Equipment makers are where orders are surging while shares slid, and results from both segments this week test that gap.

Closest to a screener match · Friday's close, 23 Oct

Electrical equipment

EatonETN
Two checks short of a pick.
Not a match
HubbellHUBB
Two checks short of a pick.
Not a match

Turbines

GE VernovaGEV
Two checks short of a pick.
Not a match

The segment chart, the dates ahead and every Power & Grid stock are on the Power & Grid page.