General Electric (GE) Gains As Market Dips: What You Should Know
General Electric (GE) closed the most recent trading day at $72.67, moving +1.01% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.08%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq gained 11.55%.
Prior to today's trading, shares of the industrial conglomerate had lost 11.68% over the past month. This has lagged the Conglomerates sector's loss of 2.37% and the S&P 500's loss of 1.03% in that time.
Investors will be hoping for strength from General Electric as it approaches its next earnings release, which is expected to be January 24, 2023. On that day, General Electric is projected to report earnings of $1.12 per share, which would represent year-over-year growth of 21.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.88 billion, up 7.79% from the year-ago period.
Investors might also notice recent changes to analyst estimates for General Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.3% lower. 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 17.09. Its industry sports an average Forward P/E of 12.79, so we one might conclude that General Electric is trading at a premium comparatively.
It is also worth noting that GE currently has a PEG ratio of 2.44. 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 1.68 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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General Electric Company (GE) : Free Stock Analysis Report
