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

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General Electric (GE - Free Report) closed the most recent trading day at $68.19, moving +0.09% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.93%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, lost 0.14%.

Coming into today, shares of the industrial conglomerate had gained 6.34% in the past month. In that same time, the Conglomerates sector gained 8.82%, while the S&P 500 gained 6.31%.

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. In that report, analysts expect General Electric to post earnings of $0.38 per share. This would mark a year-over-year decline of 5%. Meanwhile, our latest consensus estimate is calling for revenue of $17.96 billion, down 1.76% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.76 per share and revenue of $76.36 billion. These totals would mark changes of +30.19% and +3.01%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for General Electric. 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. 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. The Zacks Consensus EPS estimate has moved 2.13% lower within the past month. General Electric is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note General Electric's current valuation metrics, including its Forward P/E ratio of 24.68. This represents a premium compared to its industry's average Forward P/E of 15.69.

Meanwhile, GE's PEG ratio is currently 3.53. 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 1.41 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 37% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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