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General Electric (GE) Gains But Lags Market: What You Should Know

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General Electric (GE) closed at $97.55 in the latest trading session, marking a +1.6% move from the prior day. This change lagged the S&P 500's 2.07% gain on the day. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.49%.

Prior to today's trading, shares of the industrial conglomerate had lost 11.45% over the past month. This has lagged the Conglomerates sector's loss of 3.15% and the S&P 500's loss of 2.08% in that time.

General Electric will be looking to display strength as it nears its next earnings release. On that day, General Electric is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 31.25%. Meanwhile, our latest consensus estimate is calling for revenue of $21.33 billion, down 2.73% from the prior-year quarter.

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 might also notice recent changes to analyst estimates for General Electric. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 2.36% higher within the past month. General Electric is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, General Electric is currently trading at a Forward P/E ratio of 47.41. This represents a premium compared to its industry's average Forward P/E of 17.95.

It is also worth noting that GE currently has a PEG ratio of 8.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Diversified Operations was holding an average PEG ratio of 1.7 at yesterday's closing price.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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