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General Electric (GE) Dips More Than Broader Markets: What You Should Know

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General Electric (GE - Free Report) closed the most recent trading day at $93.70, moving -1.26% from the previous trading session. This change lagged the S&P 500's daily loss of 1.23%. Elsewhere, the Dow lost 1.29%, while the tech-heavy Nasdaq lost 0.34%.

Prior to today's trading, shares of the industrial conglomerate had gained 0.8% over the past month. This has lagged the Conglomerates sector's gain of 6.01% and the S&P 500's gain of 5.04% in that time.

Investors will be hoping for strength from General Electric as it approaches its next earnings release. In that report, analysts expect General Electric to post earnings of $0.33 per share. This would mark year-over-year growth of 37.5%. Meanwhile, our latest consensus estimate is calling for revenue of $17.33 billion, up 1.23% from the prior-year quarter.

GE's full-year Zacks Consensus Estimates are calling for earnings of $3.23 per share and revenue of $78.07 billion. These results would represent year-over-year changes of +52.36% and +5.31%, respectively.

Any recent changes to analyst estimates for General Electric should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 2.79% lower within the past month. General Electric is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, General Electric is currently trading at a Forward P/E ratio of 29.4. For comparison, its industry has an average Forward P/E of 17.79, which means General Electric is trading at a premium to the group.

It is also worth noting that GE currently has a PEG ratio of 4.2. 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 1.46 based on yesterday's closing prices.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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