We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Electric (GE) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
General Electric (GE - Free Report) closed the most recent trading day at $95.53, moving +0.88% from the previous trading session. This move lagged the S&P 500's daily gain of 1.24%. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.15%.
Coming into today, shares of the industrial conglomerate had lost 6.62% in the past month. In that same time, the Conglomerates sector lost 0.6%, while the S&P 500 lost 2.45%.
Investors will be hoping for strength from General Electric as it approaches its next earnings release. The company is expected to report EPS of $0.34, up 41.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.37 billion, up 1.44% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.23 per share and revenue of $78.15 billion, which would represent changes of +52.36% and +5.43%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for General Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.13% lower. General Electric is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, General Electric currently has a Forward P/E ratio of 29.34. This valuation marks a premium compared to its industry's average Forward P/E of 17.78.
Also, we should mention that GE has a PEG ratio of 4.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Diversified Operations stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
General Electric (GE) Gains But Lags Market: What You Should Know
General Electric (GE - Free Report) closed the most recent trading day at $95.53, moving +0.88% from the previous trading session. This move lagged the S&P 500's daily gain of 1.24%. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.15%.
Coming into today, shares of the industrial conglomerate had lost 6.62% in the past month. In that same time, the Conglomerates sector lost 0.6%, while the S&P 500 lost 2.45%.
Investors will be hoping for strength from General Electric as it approaches its next earnings release. The company is expected to report EPS of $0.34, up 41.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.37 billion, up 1.44% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.23 per share and revenue of $78.15 billion, which would represent changes of +52.36% and +5.43%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for General Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.13% lower. General Electric is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, General Electric currently has a Forward P/E ratio of 29.34. This valuation marks a premium compared to its industry's average Forward P/E of 17.78.
Also, we should mention that GE has a PEG ratio of 4.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Diversified Operations stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.