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General Electric (GE) Stock Sinks As Market Gains: What You Should Know
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General Electric (GE - Free Report) closed at $94.05 in the latest trading session, marking a -0.01% move from the prior day. This change lagged the S&P 500's 0.57% gain on the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.33%.
Prior to today's trading, shares of the industrial conglomerate had gained 11.79% over the past month. This has outpaced the Conglomerates sector's gain of 0.58% and the S&P 500's gain of 1.72% in that time.
Investors will be hoping for strength from General Electric as it approaches its next earnings release, which is expected to be April 25, 2023. In that report, analysts expect General Electric to post earnings of $0.12 per share. This would mark a year-over-year decline of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $13.36 billion, down 21.62% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.97 per share and revenue of $61.65 billion, which would represent changes of -24.81% and -19.46%, 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.
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. The Zacks Consensus EPS estimate has moved 1.94% higher within the past month. General Electric currently has a Zacks Rank of #2 (Buy).
Investors should also note General Electric's current valuation metrics, including its Forward P/E ratio of 47.78. For comparison, its industry has an average Forward P/E of 17.33, which means General Electric is trading at a premium to the group.
We can also see that GE currently has a PEG ratio of 6.83. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 1.47 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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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General Electric (GE) Stock Sinks As Market Gains: What You Should Know
General Electric (GE - Free Report) closed at $94.05 in the latest trading session, marking a -0.01% move from the prior day. This change lagged the S&P 500's 0.57% gain on the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.33%.
Prior to today's trading, shares of the industrial conglomerate had gained 11.79% over the past month. This has outpaced the Conglomerates sector's gain of 0.58% and the S&P 500's gain of 1.72% in that time.
Investors will be hoping for strength from General Electric as it approaches its next earnings release, which is expected to be April 25, 2023. In that report, analysts expect General Electric to post earnings of $0.12 per share. This would mark a year-over-year decline of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $13.36 billion, down 21.62% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.97 per share and revenue of $61.65 billion, which would represent changes of -24.81% and -19.46%, 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.
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. The Zacks Consensus EPS estimate has moved 1.94% higher within the past month. General Electric currently has a Zacks Rank of #2 (Buy).
Investors should also note General Electric's current valuation metrics, including its Forward P/E ratio of 47.78. For comparison, its industry has an average Forward P/E of 17.33, which means General Electric is trading at a premium to the group.
We can also see that GE currently has a PEG ratio of 6.83. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 1.47 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.