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

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In the latest trading session, General Electric (GE - Free Report) closed at $91.72, marking a +0.35% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.48%. Meanwhile, the Dow lost 1.05%, and the Nasdaq, a tech-heavy index, lost 0.09%.

Coming into today, shares of the industrial conglomerate had lost 2.45% in the past month. In that same time, the Conglomerates sector lost 1.87%, while the S&P 500 gained 0.08%.

Investors will be hoping for strength from General Electric as it approaches its next earnings release, which is expected to be April 26, 2022. The company is expected to report EPS of $0.20, down 16.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.2 billion, up 0.47% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.17 per share and revenue of $77.45 billion. These totals would mark changes of +49.53% and +4.48%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for General Electric. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.92% lower. General Electric is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, General Electric currently has a Forward P/E ratio of 28.87. For comparison, its industry has an average Forward P/E of 17.43, which means General Electric is trading at a premium to the group.

Also, we should mention that GE has a PEG ratio of 4.12. 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. GE's industry had an average PEG ratio of 1.31 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% 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.


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