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General Electric (GE) Flat As Market Gains: What You Should Know

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General Electric (GE - Free Report) closed the most recent trading day at $13.21, making no change from the previous trading session. This change lagged the S&P 500's daily gain of 0.82%.

Coming into today, shares of the industrial conglomerate had lost 1.34% in the past month. In that same time, the Conglomerates sector gained 4.85%, while the S&P 500 gained 2.31%.

On that day, GE is projected to report earnings of $0.04 per share, which would represent year-over-year growth of 126.67%. Meanwhile, our latest consensus estimate is calling for revenue of $18.32 billion, up 3.2% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.25 per share and revenue of $77.96 billion. These totals would mark changes of +2400% and -2.09%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for GE. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.45% higher. GE is currently a Zacks Rank #3 (Hold).

Investors should also note GE's current valuation metrics, including its Forward P/E ratio of 52.32. For comparison, its industry has an average Forward P/E of 21.52, which means GE is trading at a premium to the group.

Also, we should mention that GE has a PEG ratio of 12.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Diversified Operations stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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