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

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In the latest trading session, General Electric (GE - Free Report) closed at $61.57, marking a -0.74% move from the previous day. This change lagged the S&P 500's 0.36% gain on the day. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.1%.

Prior to today's trading, shares of the industrial conglomerate had lost 20.47% over the past month. This has lagged the Conglomerates sector's loss of 9.81% and the S&P 500's loss of 6.59% in that time.

Wall Street will be looking for positivity from General Electric as it approaches its next earnings report date. This is expected to be July 26, 2022. 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 $2.82 per share and revenue of $76.68 billion. These results would represent year-over-year changes of +33.02% and +3.44%, respectively.

Any recent changes to analyst estimates for General Electric should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.39% lower. General Electric is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, General Electric currently has a Forward P/E ratio of 22. Its industry sports an average Forward P/E of 15.39, so we one might conclude that General Electric is trading at a premium comparatively.

Meanwhile, GE's PEG ratio is currently 3.14. 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 1.44 at yesterday's closing price.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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


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