General Electric (GE) closed the most recent trading day at $7.06, moving +0.28% from the previous trading session. This change lagged the S&P 500's 0.58% gain on the day. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.24%.
Prior to today's trading, shares of the industrial conglomerate had gained 0.57% over the past month. This has lagged the Conglomerates sector's gain of 5.46% and the S&P 500's gain of 5.34% in that time.
GE will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2020. On that day, GE is projected to report earnings of -$0.14 per share, which would represent a year-over-year decline of 182.35%. Our most recent consensus estimate is calling for quarterly revenue of $17.01 billion, down 41% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0 per share and revenue of $79.49 billion, which would represent changes of -100% and -24.81%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for GE. 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.
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. The Zacks Consensus EPS estimate has moved 106.06% lower within the past month. GE is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, GE is currently trading at a Forward P/E ratio of 281.6. For comparison, its industry has an average Forward P/E of 20.19, which means GE is trading at a premium to the group.
Investors should also note that GE has a PEG ratio of 62.58 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. GE's industry had an average PEG ratio of 3.18 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% 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.
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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