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General Electric (GE) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

General Electric (GE) closed the most recent trading day at $9.38, moving +0.21% from the previous trading session. This change outpaced the S&P 500's 0.03% gain on the day. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Heading into today, shares of the industrial conglomerate had gained 11.69% over the past month, outpacing the Conglomerates sector's gain of 4.38% and the S&P 500's gain of 4.17% in that time.

Wall Street will be looking for positivity from GE as it approaches its next earnings report date. On that day, GE is projected to report earnings of $0.13 per share, which would represent a year-over-year decline of 7.14%. Our most recent consensus estimate is calling for quarterly revenue of $29.09 billion, down 1.64% from the year-ago period.

GE's full-year Zacks Consensus Estimates are calling for earnings of $0.63 per share and revenue of $117.68 billion. These results would represent year-over-year changes of -3.08% and -3.23%, respectively.

Investors might also notice recent changes to analyst estimates for GE. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.25% lower. GE is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, GE is holding a Forward P/E ratio of 14.86. This represents a discount compared to its industry's average Forward P/E of 17.

It is also worth noting that GE currently has a PEG ratio of 2.05. 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. GE's industry had an average PEG ratio of 1.89 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% 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.

To follow GE in the coming trading sessions, be sure to utilize Zacks.com.


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