In the latest trading session, General Electric (GE) closed at $64.46, marking a -0.02% move from the previous day. This move lagged the S&P 500's daily gain of 1.97%. Elsewhere, the Dow gained 1.88%, while the tech-heavy Nasdaq added 0.24%.
Prior to today's trading, shares of the industrial conglomerate had lost 14.19% over the past month. This has lagged the Conglomerates sector's loss of 10.93% and the S&P 500's loss of 9.93% in that time.
Wall Street will be looking for positivity from General Electric as it approaches its next earnings report date. This is expected to be October 25, 2022. On that day, General Electric is projected to report earnings of $0.51 per share, which would represent a year-over-year decline of 10.53%. Our most recent consensus estimate is calling for quarterly revenue of $19.04 billion, up 3.29% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.74 per share and revenue of $75.89 billion. These totals would mark changes of +29.25% and +2.38%, respectively, from last year.
Any recent changes to analyst estimates for General Electric should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. General Electric currently has a Zacks Rank of #3 (Hold).
Investors should also note General Electric's current valuation metrics, including its Forward P/E ratio of 23.56. This represents a premium compared to its industry's average Forward P/E of 14.29.
Also, we should mention that GE has a PEG ratio of 3.37. 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 1.52 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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