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
General Electric (GE - Free Report) closed at $95.60 in the latest trading session, marking a +1.65% move from the prior day. This change outpaced the S&P 500's 1.44% gain on the day. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 5.21%.
Heading into today, shares of the industrial conglomerate had gained 9.72% over the past month, outpacing the Conglomerates sector's gain of 0.95% and the S&P 500's gain of 2.28% in that time.
General Electric will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2023. On that day, General Electric is projected to report earnings of $0.12 per share, which would represent 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.97 per share and revenue of $61.65 billion. These totals would mark changes of -24.81% and -19.46%, respectively, from last year.
Any recent changes to analyst estimates for General Electric should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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.
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. The Zacks Consensus EPS estimate has moved 1.94% higher within the past month. General Electric is currently a Zacks Rank #2 (Buy).
Looking at its valuation, General Electric is holding a Forward P/E ratio of 47.77. Its industry sports an average Forward P/E of 17.46, so we one might conclude that General Electric is trading at a premium comparatively.
We can also see that GE currently has a PEG ratio of 6.82. 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 1.47 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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
General Electric (GE - Free Report) closed at $95.60 in the latest trading session, marking a +1.65% move from the prior day. This change outpaced the S&P 500's 1.44% gain on the day. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 5.21%.
Heading into today, shares of the industrial conglomerate had gained 9.72% over the past month, outpacing the Conglomerates sector's gain of 0.95% and the S&P 500's gain of 2.28% in that time.
General Electric will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2023. On that day, General Electric is projected to report earnings of $0.12 per share, which would represent 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.97 per share and revenue of $61.65 billion. These totals would mark changes of -24.81% and -19.46%, respectively, from last year.
Any recent changes to analyst estimates for General Electric should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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.
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. The Zacks Consensus EPS estimate has moved 1.94% higher within the past month. General Electric is currently a Zacks Rank #2 (Buy).
Looking at its valuation, General Electric is holding a Forward P/E ratio of 47.77. Its industry sports an average Forward P/E of 17.46, so we one might conclude that General Electric is trading at a premium comparatively.
We can also see that GE currently has a PEG ratio of 6.82. 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 1.47 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.