General Electric (GE) closed the most recent trading day at $11.16, moving +1.18% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.34%, while the tech-heavy Nasdaq added 0.23%.
Prior to today's trading, shares of the industrial conglomerate had lost 4.34% over the past month. This has lagged the Conglomerates sector's gain of 1.98% and the S&P 500's gain of 3.81% in that time.
GE will be looking to display strength as it nears its next earnings release. On that day, GE is projected to report earnings of $0.18 per share, which would represent year-over-year growth of 5.88%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.15 billion, down 21.41% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.61 per share and revenue of $94.50 billion, which would represent changes of -6.15% and -22.29%, respectively, from the prior year.
Investors might also notice 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. GE is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, GE currently has a Forward P/E ratio of 18.08. This valuation marks a premium compared to its industry's average Forward P/E of 17.18.
Meanwhile, GE's PEG ratio is currently 2.68. 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 2.21 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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