In the latest trading session, General Electric (GE) closed at $8.79, marking a -1.9% move from the previous day. This move lagged the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.22%, while the tech-heavy Nasdaq added 0.91%.
Heading into today, shares of the industrial conglomerate had lost 4.88% over the past month, lagging the Conglomerates sector's loss of 2.29% and the S&P 500's loss of 0.61% in that time.
GE will be looking to display strength as it nears its next earnings release, which is expected to be October 30, 2019. The company is expected to report EPS of $0.12, down 14.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $29.14 billion, down 1.45% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.60 per share and revenue of $115.90 billion. These totals would mark changes of -7.69% and -4.7%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for GE. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Within the past 30 days, our consensus EPS projection has moved 4.5% lower. GE is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, GE currently has a Forward P/E ratio of 14.89. For comparison, its industry has an average Forward P/E of 14.89, which means GE is trading at a no noticeable deviation to the group.
Also, we should mention that GE has a PEG ratio of 2.05. 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. GE's industry had an average PEG ratio of 1.74 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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