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In the latest trading session, General Electric (GE) closed at $92.11, marking a -1.1% move from the previous day. This change lagged the S&P 500's 0.75% loss on the day. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.23%.
Prior to today's trading, shares of the industrial conglomerate had lost 12.69% over the past month. This has lagged the Conglomerates sector's loss of 3.4% and the S&P 500's loss of 0.13% in that time.
Investors will be hoping for strength from General Electric as it approaches its next earnings release. In that report, analysts expect General Electric to post earnings of $0.84 per share. This would mark year-over-year growth of 31.25%. Our most recent consensus estimate is calling for quarterly revenue of $21.33 billion, down 2.73% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.03 per share and revenue of $75.43 billion, which would represent changes of +2437.5% and -5.26%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for General Electric. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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% higher within the past month. General Electric is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, General Electric is holding a Forward P/E ratio of 45.99. For comparison, its industry has an average Forward P/E of 17.68, which means General Electric is trading at a premium to the group.
We can also see that GE currently has a PEG ratio of 8.62. 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 1.71 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% 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.
To follow GE in the coming trading sessions, be sure to utilize Zacks.com.
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