In the latest trading session, General Electric (GE) closed at $94.16, marking a +1.98% move from the previous day. This change outpaced the S&P 500's 1.86% gain on the day. At the same time, the Dow added 1.79%, and the tech-heavy Nasdaq gained 0.4%.
Coming into today, shares of the industrial conglomerate had lost 5.74% in the past month. In that same time, the Conglomerates sector lost 7.33%, while the S&P 500 lost 5.05%.
Investors will be hoping for strength from General Electric as it approaches its next earnings release. In that report, analysts expect General Electric to post earnings of $0.39 per share. This would mark year-over-year growth of 62.5%. Meanwhile, our latest consensus estimate is calling for revenue of $17.43 billion, up 1.85% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.46 per share and revenue of $78.47 billion, which would represent changes of +63.21% and +5.86%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for General Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 7.83% lower within the past month. General Electric currently has a Zacks Rank of #4 (Sell).
In terms of valuation, General Electric is currently trading at a Forward P/E ratio of 26.68. Its industry sports an average Forward P/E of 17.25, so we one might conclude that General Electric is trading at a premium comparatively.
Investors should also note that GE has a PEG ratio of 3.81 right now. 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 industry currently had an average PEG ratio of 1.42 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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General Electric Company (GE) : Free Stock Analysis Report
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