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General Electric (GE) Stock Sinks As Market Gains: What You Should Know

·3 min read

General Electric (GE) closed the most recent trading day at $70.03, moving -1.14% from the previous trading session. This change lagged the S&P 500's daily gain of 0.34%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.02%.

Coming into today, shares of the industrial conglomerate had lost 12.62% in the past month. In that same time, the Conglomerates sector lost 8.74%, while the S&P 500 lost 7.95%.

Wall Street will be looking for positivity from General Electric as it approaches its next earnings report date. 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

Investors might also notice recent changes to analyst estimates for General Electric. These revisions help to show the ever-changing nature of near-term business trends. 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.

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 is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, General Electric is currently trading at a Forward P/E ratio of 25.89. This valuation marks a premium compared to its industry's average Forward P/E of 16.43.

Meanwhile, GE's PEG ratio is currently 3.7. 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 1.59 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.


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