General Electric (GE) Stock Sinks As Market Gains: What You Should Know
General Electric (GE) closed the most recent trading day at $91.37, moving -0.24% from the previous trading session. This move lagged the S&P 500's daily gain of 0.56%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, added 1.35%.
Coming into today, shares of the industrial conglomerate had gained 10.43% in the past month. In that same time, the Conglomerates sector lost 1.63%, while the S&P 500 lost 1.48%.
General Electric will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2023. In that report, analysts expect General Electric to post earnings of $0.12 per share. This would mark a year-over-year decline of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $13.36 billion, down 21.62% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.97 per share and revenue of $61.65 billion. These totals would mark changes of -24.81% and -19.46%, respectively, from last year.
It is also important to note the 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 1.94% higher within the past month. General Electric is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, General Electric is currently trading at a Forward P/E ratio of 46.52. For comparison, its industry has an average Forward P/E of 16.76, which means General Electric is trading at a premium to the group.
It is also worth noting that GE currently has a PEG ratio of 6.65. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 1.41 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
General Electric Company (GE) : Free Stock Analysis Report
To read this article on Zacks.com click here.