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

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In the latest trading session, General Electric (GE - Free Report) closed at $77.52, marking a -0.98% move from the previous day. This move lagged the S&P 500's daily loss of 0.75%. At the same time, the Dow lost 0.54%, and the tech-heavy Nasdaq gained 0.24%.

Coming into today, shares of the industrial conglomerate had gained 0.81% in the past month. In that same time, the Conglomerates sector gained 3.58%, while the S&P 500 gained 0.32%.

Wall Street will be looking for positivity from General Electric as it approaches its next earnings report date. On that day, General Electric is projected to report earnings of $0.39 per share, which would represent a year-over-year decline of 2.5%. Our most recent consensus estimate is calling for quarterly revenue of $18.07 billion, down 1.17% from the year-ago period.

GE's full-year Zacks Consensus Estimates are calling for earnings of $2.83 per share and revenue of $76.68 billion. These results would represent year-over-year changes of +33.49% and +3.44%, respectively.

Investors might also notice recent changes to analyst estimates for General Electric. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Within the past 30 days, our consensus EPS projection has moved 2.3% lower. General Electric is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, General Electric is holding a Forward P/E ratio of 27.65. Its industry sports an average Forward P/E of 15.56, so we one might conclude that General Electric is trading at a premium comparatively.

We can also see that GE currently has a PEG ratio of 3.95. 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. The Diversified Operations industry currently had an average PEG ratio of 1.3 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.

To follow GE in the coming trading sessions, be sure to utilize Zacks.com.


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