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General Electric (GE) Stock Moves -1.08%: What You Should Know

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General Electric (GE - Free Report) closed the most recent trading day at $77.16, moving -1.08% from the previous trading session. This change traded in line with S&P 500. At the same time, the Dow lost 0.81%, and the tech-heavy Nasdaq gained 0.22%.

Coming into today, shares of the industrial conglomerate had gained 6.4% in the past month. In that same time, the Conglomerates sector gained 3.05%, while the S&P 500 gained 1.03%.

Wall Street will be looking for positivity from General Electric as it approaches its next earnings report date. The company is expected to report EPS of $0.39, down 2.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $18.07 billion, down 1.17% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.83 per share and revenue of $76.68 billion, which would represent changes of +33.49% and +3.44%, respectively, from the prior year.

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

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 2.3% lower. General Electric is holding a Zacks Rank of #5 (Strong Sell) right now.

Valuation is also important, so investors should note that General Electric has a Forward P/E ratio of 27.55 right now. This valuation marks a premium compared to its industry's average Forward P/E of 16.11.

Investors should also note that GE has a PEG ratio of 3.94 right now. 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 was holding an average PEG ratio of 1.42 at yesterday's closing price.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.

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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