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General Electric (GE) Dips More Than Broader Markets: What You Should Know

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General Electric (GE - Free Report) closed at $10.99 in the latest trading session, marking a -0.99% move from the prior day. This change lagged the S&P 500's daily loss of 0.32%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.4%.

Prior to today's trading, shares of the industrial conglomerate had lost 1.68% over the past month. This has lagged the Conglomerates sector's gain of 1% and the S&P 500's gain of 2.51% in that time.

GE will be looking to display strength as it nears its next earnings release. In that report, analysts expect GE to post earnings of $0.18 per share. This would mark year-over-year growth of 5.88%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.20 billion, down 21.26% from the year-ago period.

GE's full-year Zacks Consensus Estimates are calling for earnings of $0.61 per share and revenue of $94.50 billion. These results would represent year-over-year changes of -6.15% and -22.29%, respectively.

Any recent changes to analyst estimates for GE should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. GE is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that GE has a Forward P/E ratio of 18.2 right now. This represents a premium compared to its industry's average Forward P/E of 17.5.

Investors should also note that GE has a PEG ratio of 2.7 right now. 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 2.05 at yesterday's closing price.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 99, 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.

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


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