"General Electric shares have lagged behind the industrial sector and the broad stock market for more than a decade. Now, they're poised to outperform. The company in coming quarters will deliver the two things investors want most: smaller financial operations and more growth. Shares (ticker: GE), at a recent $24, could rise more than 30% over two years to $32, while paying an annual dividend yield of 3.2%.
"We have the biggest backlog of new business in the company's history," Chief Executive Jeffrey Immelt told Barron's in response to the too-big-to-grow question. "We're in industries that are growing much faster than local economies. And we have the best exposure to emerging markets of any company in the world."
General Electric CEO Jeffrey Immelt: "I'm still incredibly hungry to make the company do better.
The backlog, $223 billion, is equal to more than a year and a half of GE's revenue"
The Bottom Line
GE's earnings could grow 20%, to $2 a share, by 2015. As investors value the company more like an industrial, shares could rise to $32 from $24."