In the latest trading session, General Electric (GE) closed at $12.40, marking a -0.88% move from the previous day. This change lagged the S&P 500's 0.22% loss on the day. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.26%.
Heading into today, shares of the industrial conglomerate had lost 3.32% over the past month, lagging the Conglomerates sector's gain of 1.18% and the S&P 500's gain of 1.28% in that time.
Wall Street will be looking for positivity from GE as it approaches its next earnings report date. This is expected to be October 19, 2018. In that report, analysts expect GE to post earnings of $0.22 per share. This would mark a year-over-year decline of 24.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.89 billion, down 10.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.97 per share and revenue of $121.58 billion. These totals would mark changes of -7.62% and -0.42%, respectively, from last year.
Any recent changes to analyst estimates for GE should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.21% lower. GE is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that GE has a Forward P/E ratio of 12.93 right now. This represents a discount compared to its industry's average Forward P/E of 18.47.
We can also see that GE currently has a PEG ratio of 2.35. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Diversified Operations industry currently had an average PEG ratio of 1.66 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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General Electric Company (GE) : Free Stock Analysis Report
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