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General Electric (GE) Gains As Market Dips: What You Should Know

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General Electric (GE) closed at $90.83 in the latest trading session, marking a +0.09% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.21%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 0.49%.

Prior to today's trading, shares of the industrial conglomerate had lost 4.17% over the past month. This has lagged the Conglomerates sector's gain of 4.89% and the S&P 500's gain of 5.85% in that time.

Investors will be hoping for strength from General Electric as it approaches its next earnings release, which is expected to be April 26, 2022. In that report, analysts expect General Electric to post earnings of $0.23 per share. This would mark a year-over-year decline of 4.17%. Meanwhile, our latest consensus estimate is calling for revenue of $17.17 billion, up 0.3% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.17 per share and revenue of $77.54 billion. These totals would mark changes of +49.53% and +4.6%, respectively, from last 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.71% lower within the past month. General Electric is currently a Zacks Rank #3 (Hold).

Looking at its valuation, General Electric is holding a Forward P/E ratio of 28.61. This represents a premium compared to its industry's average Forward P/E of 16.61.

Also, we should mention that GE has a PEG ratio of 4.09. 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. The Diversified Operations was holding an average PEG ratio of 1.33 at yesterday's closing price.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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