We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Electric (GE) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, General Electric (GE - Free Report) closed at $67.05, marking a +0.99% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 0.2%.
Heading into today, shares of the industrial conglomerate had lost 14.58% over the past month, lagging the Conglomerates sector's loss of 12.3% and the S&P 500's loss of 9.94% in that time.
General Electric will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2022. The company is expected to report EPS of $0.51, down 10.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $19.04 billion, up 3.29% from the prior-year quarter.
GE's full-year Zacks Consensus Estimates are calling for earnings of $2.74 per share and revenue of $75.89 billion. These results would represent year-over-year changes of +29.25% and +2.38%, respectively.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. General Electric currently has a Zacks Rank of #3 (Hold).
In terms of valuation, General Electric is currently trading at a Forward P/E ratio of 24.26. This valuation marks a premium compared to its industry's average Forward P/E of 15.25.
It is also worth noting that GE currently has a PEG ratio of 3.47. 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 1.56 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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.
To follow GE in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
General Electric (GE) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, General Electric (GE - Free Report) closed at $67.05, marking a +0.99% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 0.2%.
Heading into today, shares of the industrial conglomerate had lost 14.58% over the past month, lagging the Conglomerates sector's loss of 12.3% and the S&P 500's loss of 9.94% in that time.
General Electric will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2022. The company is expected to report EPS of $0.51, down 10.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $19.04 billion, up 3.29% from the prior-year quarter.
GE's full-year Zacks Consensus Estimates are calling for earnings of $2.74 per share and revenue of $75.89 billion. These results would represent year-over-year changes of +29.25% and +2.38%, respectively.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. General Electric currently has a Zacks Rank of #3 (Hold).
In terms of valuation, General Electric is currently trading at a Forward P/E ratio of 24.26. This valuation marks a premium compared to its industry's average Forward P/E of 15.25.
It is also worth noting that GE currently has a PEG ratio of 3.47. 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 1.56 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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.
To follow GE in the coming trading sessions, be sure to utilize Zacks.com.