68V.HM - BAKER HUGHES CO.
| Previous Close | 15.86 |
| Open | 15.05 |
| Bid | 0.00 x 0 |
| Ask | 0.00 x 0 |
| Day's Range | 15.05 - 15.05 |
| 52 Week Range | 15.05 - 24.77 |
| Volume | 200 |
| Avg. Volume | 0 |
| Market Cap | N/A |
| Beta (5Y Monthly) | N/A |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | N/A |
| Earnings Date | N/A |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | N/A |
- MarketWatch
U.S. oil-rig count from Baker Hughes show a slight weekly decline
Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil fell by one to 678 this week. That followed modest increases in each of the last three weeks. The total active U.S. rig count, meanwhile, also declined by one to 790, according to Baker Hughes. Oil prices continued their decline on worries over the COVID-19 impact on energy demand. April West Texas Intermediate crude was down $2.39, or 5.1%, at $44.70 a barrel. It was trading at $44.86 before the rig data.
- Simply Wall St.
Insider Buying: The Baker Hughes Company (NYSE:BKR) Chairman Just Bought US$300k Worth Of Shares
Potential Baker Hughes Company (NYSE:BKR) shareholders may wish to note that the Chairman, Lorenzo Simonelli, recently...
- MarketWatch
U.S. oil-rig count from Baker Hughes edges up for a third straight week
Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil rose by one to 679 this week. That followed modest increases in each of the last two weeks. The total active U.S. rig count, meanwhile, also climbed by 1 to 791, according to Baker Hughes. Oil prices continued their decline, with April West Texas Intermediate crude down 36 cents, or 0.7%, at $53.52 a barrel. It was trading at $53.45 before the rig data.
- MarketWatch
Baker Hughes reports a modest weekly rise in the U.S. oil-rig count
Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil rose by two to 678 this week. The total active U.S. rig count, meanwhile, was unchanged at 790, according to Baker Hughes. Oil prices continued to gain, with March West Texas Intermediate crude up 39 cents, or 0.8%, at $51.81 a barrel. It was trading at $51.72 before the rig data.
- InvestorPlace
Despite the Q4 Win, It’s Time to Sell General Electric Stock
Talk about a blast from the past. General Electric (NYSE:GE) stock is up over 16% so far this year, thanks in part to a better-than-expected earnings report last week that has some believing there's new life in the beleaguered company.Source: JPstock/Shutterstock.com Bank of America analyst Andrew Obin raised his price target for GE stock by 33%, to $16 per share. He also upgraded the stock from "hold" to "buy" after the company blew away expectations by posting earnings of 21 cents per share and revenue of $26.2 billion. Analysts had expected earnings of 18 cents per share and revenue of $25.6 billion.GE bulls were also cheered by the company's free cash flow of $2.3 billion, which was at the upper end of guidance.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe positive report gave CEO Larry Culp something to crow about. And since he took over the top post in October 2018, he hasn't had much to celebrate."We're proud of our progress in 2019, including decisive actions to reduce our leverage and strengthen our businesses," Culp said in a press statement. "Our work continues, but GE's committed team, exceptional technology, and global network make me more confident than ever that we can deliver."Should you believe in the GE turnaround story? As ESPN's Lee Corso would say, not so fast, my friends. As a stock, General Electric is in deep, deep water. A one-quarter turnaround is just the first step of a long journey toward redemption. GE Stock Is Still TroubledIt hasn't been so long since General Electric earnings really mattered. Since the company is one of the first in the cycle to issue its report, GE earnings used to be a bellwether for the stock market and the general economy.Man, have times changed.GE was one of the original members of the Dow Jones Industrial Average. It was known for everything from light bulbs to home appliances, aviation, power and even healthcare. Even as recently as 20 years ago, it had a market capitalization of $600 billion. That made it one of the most valuable public companies in the United States.But it all fell apart, thanks to a failed effort to invest in the homeland security business and disastrous bets on the oil and gas industry. The company's deal to merge with Baker Hughes (NYSE:BKR) has been particularly painful.Subprime mortgages also killed General Electric just a few years later."In 2004, with U.S. home prices rocketing, GE paid $500 million for a subprime mortgage company called WMC. In 2007, with home prices falling, GE laid off most WMC employees and sold the company, which lost $1 billion that year," Fortune's Geoff Colvin wrote. "This past February, GE announced that the Justice Department 'is likely to assert' violations of law at WMC when GE owned it, and GE reserved $1.5 billion against a possible penalty"That's beyond painful. It's crippling.And then there's the dividend. General Electric was one of the most reliable dividend stocks before it lost 60% of its market cap between late 2016 and early 2018. That drop came even while the rest of the stock market was rising. GE cut its dividend in half, from 24 cents to 12 cents, in April 2018, then shaved it down to just a penny later that year. The Bottom LineJeff Immelt, who succeeded longtime CEO Jack Welch, gets most of the blame for GE's fall.Immelt's abject failure as CEO even casts a pall on the legacy of his predecessor, under whose leadership GE's value rose by 4,000% from 1981 to 2001.Although it was once a blue-chip stalwart GE's time as a dependable stock has come and gone. It was booted from the Dow in 2018 -- a huge embarrassment -- and GE stock is down 49% in the last five years. It completely missed out on the bull run that pushed the Dow and the S&P 500 to repeated new heights.If you are to believe this turnaround story then you have to accept the fact that GE is standing at the bottom of a veritable ocean of mismanagement, weak performance and an outdated business model. It has years to go before it breaks the surface. And you're likely to drown if you go along for the ride.There are better stocks out there than GE. Appreciate that there's a temporary bump in the stock price, sell GE stock and move on to greener pastures.Patrick Sanders is a freelance writer and editor in Maryland, and from 2015 to 2019 was head of the investment advice section at U.S. News & World Report. Follow him on Twitter at @1patricksanders. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Utility Stocks to Buy That Offer Juicy Dividends * 10 Gold and Silver Stocks to Profit Off 2020's Fear Trade * 3 Top Companies That Should Be More Careful With Your Data The post Despite the Q4 Win, It's Time to Sell General Electric Stock appeared first on InvestorPlace.
- Business Wire
Baker Hughes Announces January 2020 Rig Counts
Baker Hughes (NYSE: BKR) announced today that the Baker Hughes international rig count for January 2020 was 1,078, down 26 from the 1,104 counted in December 2019, and up 54 from the 1,024 counted in January 2019. The international offshore rig count for January 2020 was 245, down 12 from the 257 counted in December 2019, and up 3 from the 242 counted in January 2019.
- Business Wire
Baker Hughes & C3.ai Release BHC3 Production Optimization™
Baker Hughes (NYSE:BKR) and C3.ai today announced the launch of BHC3 Production Optimization™, an AI-based application that allows well operators to view real-time production data, better project future production, and help optimize operations for improved oil and gas production rates. The application is the latest addition to the growing portfolio of BHC3 artificial intelligence (AI) applications.
- Simply Wall St.
Earnings Miss: Baker Hughes Company Missed EPS By 66% And Analysts Are Revising Their Forecasts
Last week, you might have seen that Baker Hughes Company (NYSE:BKR) released its annual result to the market. The...
- Business Wire
Baker Hughes Declares Quarterly Dividend
Baker Hughes (NYSE: BKR) announced today that the Baker Hughes Board of Directors declared a cash dividend of $.18 per share of Class A common stock payable on February 14, 2020 to holders of record on February 3, 2020.
- MarketWatch
Baker Hughes adjusted profit and revenue rise, but miss expectations
Baker Hughes Co. reported Wednesday fourth-quarter profit and revenue that rose less than expected, as beats in oilfield services and turbomachinery and process solutions revenue was offset by a miss in oilfield equipment. The stock was still inactive in premarket trading. Net income fell to $48 million, or 7 cents a share, from $131 million, or 28 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share grew to 27 cents from 26 cents, but were below the FactSet consensus of 31 cents. Revenue increased 1% to $6.35 billion, missing the FactSet consensus of $6.48 billion. Orders increased 1% to $6.94 billion. Oilfield services revenue rose 7% to $3.29 billion, above the FactSet consensus of $3.28 billion; turbomachinery revenue fell 8% to $1.32 billion, below expectations of $1.82 billion; oilfield equipment revenue rose 5% to $765 million, beating expectations of $753 million. The stock has gained 0.4% over the past three months, while the SPDR Energy Select Sector ETF has slipped 1.3% and the S&P 500 has gained 10.8%.
- Business Wire
Baker Hughes Company Announces Fourth Quarter and Total Year 2019 Results
Baker Hughes Company (NYSE: BKR) ("Baker Hughes" or the "Company") announced results today for the fourth quarter and total year 2019.
- Yahoo Finance
Johnson & Johnson earnings, existing home sales — What to know in markets Wednesday
Dow component Johnson & Johnson earnings and existing home sales for December will be the focal points for investors Wednesday.
- InvestorPlace
Why Next Week’s Earnings Are Huge for General Electric
Investors are starting to believe in General Electric (NYSE:GE) again. GE stock has rallied some 54% from August lows. And there's a case that the rally can continue.Source: testing / Shutterstock.com After all, the bull case for General Electric stock rests on a turnaround engineered by chief executive officer Larry Culp. Culp transformed Danaher (NYSE:DHR) into a technology powerhouse; Danaher stock rose some 530% during his 14-year tenure. * 10 Cheap Stocks to Buy Under $10 Culp's appointment as General Electric's CEO on Oct. 1, 2018 was greeted with hopes that Culp could work similar magic: GE stock rose 7.1% on the news. But that enthusiasm has dimmed over time. Even with the rally over the past five months, General Electric shares are up less than 2% in the fifteen-plus months since Culp's hiring was announced.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe lack of upside so far suggests that more upside could be on the way if General Electric can drive the hoped-for turnaround. That's still a huge 'if,' however. Fourth quarter earnings on Jan. 29 will be huge in establishing how much progress GE is making -- and how much confidence investors can have in its future. Why Q4 Earnings Won't Change the CaseThe fourth quarter numbers themselves may not be all that important. Analyst estimates are soft, with the Street looking for earnings per share to climb a penny year-over-year on revenue down 23.5%.The top line pressure isn't necessarily the sign of a declining business. GE Aviation likely will see short-term pressure from the 737 MAX issues at key customer Boeing (NYSE:BA). And a reduction in the company's stake in Baker Hughes (NYSE:BKR) means that business no longer will be part of GE's consolidated financials.Q4 almost certainly isn't going to be impressive. Of course, that won't surprise anyone who's been paying attention. These two short-term factors will hit the reported numbers. And from a long-term standpoint, even Culp himself has emphasized more than once that the turnaround here will take time.The one number that will be closely watched is free cash flow. General Electric already has raised its outlook twice this year, and needs to hit its target. The gap between earnings and cash flow long has been a problem for GE stock. It was a key part of the (admittedly questionable) short seller report that sent shares tumbling briefly last year. And disappointing cash flow generation contributed to the two dividend cuts seen in recent years.Reaching the current forecast of roughly $2 billion in industrial cash flow (which excludes contributions from GE Capital) would be a step toward restoring GE's credibility. That aside, Q4 numbers, barring a huge surprise, seem highly unlikely to change sentiment toward General Electric.But that doesn't mean the fourth quarter release doesn't matter. It does. Why the Q4 Earnings Release Might Change the CaseThe focus won't be on the backward-looking numbers for a quarter affected by external factors. It's going to be on 2020 guidance.Again, General Electric has a long road ahead. Success is not guaranteed. As Dirk Hackbarth, Professor of Finance at the Boston University Questrom School of Business, told InvestorPlace:"Given its rebound, GE's future seems to be less of a "continued turnaround" and more one of a "strategic disinvestment" of its non-core pieces for the best prices it can get…Moreover, the proceeds from asset sales and spin-offs should be used to gradually de-lever GE to a level that is more in line with its profitability (e.g. return on assets) going forward."The bull case is that this will become a "leaner and meaner" General Electric. And so it would do wonders for GE stock if the company can show some progress this year. Right now, analysts aren't sure it will. Wall Street estimates for 2020 earnings per share currently have a wide range: the low estimate, according to Yahoo! Finance, is 49 cents, while the most bullish projection sits at 77 cents.That range isn't surprising given that analyst price targets too have a large split, as Hackbarth pointed out and Barron's noted last year. At the moment, the most bearish analyst (which I believe is Morgan Stanley's Stephen Tusa, long a GE skeptic) values GE stock at $5. The high target is $14.In that context, the 2020 outlook becomes exceedingly important. Full-year 2019 adjusted EPS should come in around 61 cents. If GE guides toward the low end of Street estimates, GE stock quickly looks overvalued. Investors are paying something close to 20x earnings -- and a higher multiple to free cash flow -- for a business still in decline.If GE supports more bullish expectations, however, this story gets much more interesting in a hurry. Guidance for, say, 70 cents would imply double-digit profit growth in 2020. Yet GE stock would be trading at roughly 17x that guidance. Rival Honeywell (NYSE:HON) trades at 21x 2020 consensus earnings with single-digit growth expected. A Big Stretch for GE StockAgain, next week's release won't prove that GE is destined for a turnaround -- or that it's doomed to further declines. But 2020 guidance, in particular, well may establish the direction of General Electric stock for several months, if not the rest of this year.It could go either way. GE stock could look very different depending on the trajectory established by 2020 results. Hackbarth forecast that the stock "more likely stabilizes in the current price range" this year. If 2020 performance in line with current expectations, that forecast is probably correct.But if GE can surprise to the upside, the story improves. GE has "many attractive parts," as Hackbarth put it. Aviation should benefit from long-term air travel demand. Healthcare has real potential, as I detailed last month. GE Power has substantial room for improvement. Those three units underpin the bull case here.That bull case, however, exists mostly on paper for now. It's up to Culp and GE to turn that theoretical potential into practical returns and cash flow. A confident outlook for 2020 can drive more confidence on that front, and thus more confidence in GE stock.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monthly Dividend Stocks to Buy to Pay the Bills * 7 Earnings Reports to Watch Next Week * 7 5G Stocks to Connect Your Portfolio To The post Why Next Week's Earnings Are Huge for General Electric appeared first on InvestorPlace.
- MarketWatch
Baker Hughes reports a weekly rise in the U.S. oil-rig count
Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil rose by 14 to 673 this week. That followed declines for oil rigs in each of the past three weeks. The total active U.S. rig count, meanwhile, was up 15 from last week to 796, according to Baker Hughes. Oil prices extended their decline, with February West Texas Intermediate crude down 20 cents, or 0.3%, at $58.32 a barrel. It was trading at $58.50 before the rig data.
- Barrons.com
2 Oil-Services Stocks to Own and 8 to Avoid, According to an Analyst
Bernstein analyst Nicholas Green argues that investors should indeed put money to work in the oil-services sector. He said some companies offer enormous opportunities to savvy investors.
- MarketWatch
U.S. oil futures post their biggest weekly loss since July
Oil futures settled lower on Friday, with U.S. benchmark prices down more than 6% for the week, marking their largest weekly percentage decline since July, according to FactSet data. Baker Hughes reported a third weekly fall in the number of active U.S. rigs drilling for oil, but the news failed to support prices, which have now fallen for four consecutive sessions following a lack of significant developments in the U.S.-Iran conflict. February West Texas Intermediate oil declined by 52 cents, or 0.9%, to settle at $59.04 barrel on the New York Mercantile Exchange. For the week, the front-month contract fell 6.4%, marking the biggest weekly percentage decline since July.
- MarketWatch
Baker Hughes data show U.S. oil-rig count down a third week in a row
Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil fell by 11 to 659 this week. That followed declines for oil rigs in each of the past two weeks. The total active U.S. rig count, meanwhile, was down 15 from last week at 781, according to Baker Hughes. Oil prices continued to decline, with February West Texas Intermediate crude down 29 cents, or 0.5%, at $59.27 a barrel.
- InvestorPlace
It’s Time to Be Cautious With General Electric Stock
As with many other stocks in 2019, General Electric (NYSE:GE) ended with a nice bullish move. Starting in early October, shares of GE stock went from $8.28 to around $12 per share. This put the year-long return for 2019 at about 53%, which exceeded the gain on the S&P 500.Source: testing / Shutterstock.com This performance, though, is more than just about general optimism in the overall markets. CEO Larry Culp has done a standout job at the helm since coming on board in October 2018.Although, this should not be a surprise. When he was the CEO of Danaher (NYSE:DHR) -- from 2000 to 2014 -- there was a five-fold jump in both the revenues and market cap.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHe showed that he can effectively manage the strategic vision, as well as the nuanced details of a complex organization. He also demonstrated a great ability to apply process methodologies, like lean manufacturing -- which strives for continuous improvement. This approach was initially innovated at Toyota (NYSE:TM). * 8 of the Strangest Stocks Worth Your Time When Culp became CEO of GE, the situation was dire. The company had gone through two CEOs, the shares were delisted from the Dow, the dividend was slashed and the losses were piling up. From 2016 to 2018, the General Electric stock went from $32 to under $7.However, Culp put together a smart playbook to right the ship. Of course, a key part of this was an aggressive focus on reducing the bloated cost structure. He also was swift in unloading assets, like the biotech business and Baker Hughes (NYSE:BKR).Yet, this was mostly about the low-hanging fruit. Going forward, it will likely be more difficult to find ways to improve the organization. Many Problems RemainOne of the biggest issues for GE stock is the GE engine segment, which accounts for a hefty 60% of the industrial profits. The problem, of course, is Boeing's (NYSE:BA) 737 MAX, which has been sidelined due to two traffic airline crashes. It is still far from clear when production and deliveries will resume. But in the meantime, GE is feeling the impact, with a quarterly loss of $400 million in cash flows. This is likely to put lots of pressure on the company given the enormous debt load of $93.2 billion.Furthermore, the other company segments are also lagging. For example, even though the Power business has shown improvement, revenues were still off by 14% in the latest quarter. What's more, the Healthcare Systems unit has been mostly lackluster, with a meager 5% increase on the top line. There has continued to be weakness in China and the Middle East.Then there is GE Capital, which is suffering from the liabilities of its long-term care business. In the quarter, there was a loss of $645 million. Bottom Line on the GE Stock PriceFor the most part, Culp has stabilized operations, which is definitely crucial. Not long ago, there were serious concerns about the viability of GE; The situation had gotten that bad.But despite all this, it does look like that much of the good news has already been factored into GE stock. Consider that the forward price-to-earnings ratio is 18x, which is rich for a company that still has a host of problems. By comparison, Honeywell (NYSE:HON) trades at 20X and United Technologies (NYSE:UTX) is at 18X. No doubt, both of these companies are on much more solid footing.So, at least in the near-term, it's probably best to be cautious with GE stock.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Strangest Stocks Worth Your Time * 7 Stocks to Buy That Trump's Tax Cut Truly Rewarded * 5 Stocks That Could Double in 2020 The post Itas Time to Be Cautious With General Electric Stock appeared first on InvestorPlace.
- Business Wire
Baker Hughes Announces December 2019 Rig Counts
Baker Hughes (NYSE: BKR) announced today that the Baker Hughes international rig count for December 2019 was 1,104, up 8 from the 1,096 counted in November 2019, and up 79 from the 1,025 counted in December 2018. The international offshore rig count for December 2019 was 257, up 10 from the 247 counted in November 2019, and up 23 from the 234 counted in December 2018.
- Barrons.com
The Dow Is Sliding. So Are Oil, and Oil Stocks.
The price of oil continued to slide, reversing gains sparked by the U.S.’s killing of a top Iranian general last week. The major U.S. stock indexes were mixed.
- MarketWatch
Baker Hughes data show U.S. oil-rig count down a second week in a row
Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil fell by seven to 670 this week. That followed a decline of eight oil rigs in the previous week. The total active U.S. rig count, meanwhile, was down nine from last week at 796, according to Baker Hughes. Oil prices continued to rise on the back of heightened U.S.-Iran tensions, with February West Texas Intermediate crude up $1.48, or 2.4%, at $62.66 a barrel.
- Simply Wall St.
Why Baker Hughes Company's (NYSE:BKR) High P/E Ratio Isn't Necessarily A Bad Thing
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios...
- Kiplinger
20 Top Stock Picks the Analysts Love for 2020
The stock market smashed record after record in 2019. The S&P; 500 put up nearly 30% in gains - one of the index's largest annual increases in years. That's the good news. The bad news is that has driven prices through the roof, making it even more difficult on analysts to find high-upside stock picks for 2020.They already had their work cut out for them. Some of Wall Street's pros aren't betting on a market-wide encore in the new year, for several reasons. Volatility is widely expected as a result of America's presidential election. Economists believe U.S. economic growth will decelerate. And analysts think the pace of stock buybacks will slow."We believe the U.S. economy will muddle through in 2020, but expect EPS growth to disappoint," Morgan Stanley Chief Investment Officer Michael Wilson writes. "We prefer value over growth, with a slight defensive bias."Other pros are a little more optimistic. For instance, Jonathan Golub, chief U.S. equity strategist at Credit Suisse, tells investors that better economic data is on the way, possibly lifting the S&P; 500 by 10% by year's end.With that mixed outlook in mind, here are the analysts' top stock picks for 2020. We used TipRanks' analyst-tracking data to discover the best of the bunch - stocks that have loads of upside potential from current share prices. And all of these picks have amassed so many bullish recommendations from top-performing analysts that they've earned a Strong Buy consensus rating. Read on to learn more about what makes these stocks stand out. SEE ALSO: The 20 Best Stocks to Buy for 2020
- MarketWatch
U.S. oil prices hold sharp loss after Baker Hughes shows gain of 18 in rigs drilling for oil
U.S. oil shares held onto sharp losses midday Friday after a weekly report from Baker Hughes reported that the number of active U.S. rigs drilling for oil rose by 18 to 685 this week, marking a second straight rise in rigs. The total active U.S. rig count also climbed by 14 to 813, according to Baker Hughes. Oil prices held onto their earlier declines, with February West Texas Intermediate crude off 87 cents, or 1.4%, at $60.31 a barrel. For the week, WTI is clinging to a 0.4% weekly gain, according to FactSet data.
- InvestorPlace
One Event Shows All the Key Hopes and Challenges for General Electric
General Electric (NYSE:GE) remains one of the market's more divisive stocks. GE bulls see a once-great company destined for a renaissance under new CEO Larry Culp. Bears see an unfocused conglomerate facing real challenges, sitting on top of possibly toxic assets held by the GE Capital unit.Source: Carsten Reisinger / Shutterstock.com Indeed, even Wall Street is split. As Barron's has noted on several occasions, the spread in analyst price targets is over 80% higher than that of the average Dow Jones Industrial Average stock. Bears -- with the most well-known Stephen Tusa of J.P. Morgan Chase -- see the stock worth as little as $5. The high target price sits at $14.For now, the market as a whole puts fair value somewhere in the middle. So do I. GE clearly was one of the biggest winners from third-quarter earnings. But risks still loom.InvestorPlace - Stock Market News, Stock Advice & Trading TipsEarlier this month, GE held an Investor Day for its GE Healthcare business, an effort to give investors and analysts more information on a key business. And that Investor Day seems to be a microcosm of the broader case for, and against, GE. In Healthcare, as with the business as a whole, there is room for optimism, and reason to question whether even that optimism already is priced in. Where GE Healthcare FitsGE Healthcare is important to the broader investment case here, but it's probably not the most important business. Aviation, even with the struggles at key customer Boeing (NYSE:BA), almost certainly is the most valuable. GE Power probably has the most optionality, as it tries to manage a declining market for gas turbines that has showed some life lately.That said, healthcare matters. In my detailed sum-of-the-parts analysis of GE last year, I estimated the business was worth between $40 billion and $45 billion. Admittedly, some of that valuation is going out the door. GE is selling its Biopharma business, part of the Healthcare unit, to Danaher (NYSE:DHR) for $21.4 billion. That deal, according to a recent regulatory filing, should close in the first quarter. * 10 Stocks to Buy That Lost 8%-Plus in the Past Month Still, the remaining business matters to valuation, given that General Electric has a market capitalization just shy of $100 billion. And it matters in terms of much-needed free cash flow, a recent trouble spot for GE.Healthcare also is important simply as a source of stability. Power's outlook depends on natural gas power plant demand, which remains uncertain. GE's investment in Baker Hughes (NYSE:BKR) still is worth almost $10 billion but remains susceptible to oil and gas activity. Aviation should have near-term demand weakness from Boeing and long-term exposure to macroeconomic cycles.Healthcare is the business that, if all goes right, can provide at least a solid base for General Electric's turnaround. That makes it more important than a simple SOTP valuation might suggest. Investor Day Changes Few MindsThat in turn makes this month's event reasonably important for investors. But, perhaps unsurprisingly, it appears that Investor Day did little to change minds. Neither Tusa nor his fellow bear, Gordon Haskett analyst John Inch, saw anything to change their sentiment. Bulls saw a stable business, with a high amount of recurring service revenue (about 45% of the total, per the company's presentation).The unchanged sentiment on both sides can be attributed at least in part to stubbornness. But there's also a sense in which Healthcare simply is a microcosm of the broader story here. As a bullish analyst noted last week, valuing GE "is not trivial". Reasonable investors can see equity value very differently, particularly given the still-heavy load of debt and pension obligations.And those same investors can see the Healthcare business quite differently, even after Investor Day. As with GE as a whole, there's a good news/bad news split to the business. GE HealthcareThe good news is that end markets appear stable, and growing. The largest markets, imaging and ultrasound, should increase at a 3-4% annual rate going forward, according to GE. GE Healthcare is the market leader in pharmaceutical diagnostics, including contrast media used in scanning. And digital efforts, plus the Edison artificial intelligence platform, should drive services revenue and help margins.On the whole, the message from Investor Day is that GE Healthcare simply is a good business. Growth isn't expected to be torrid, for sure. But it should be steady -- and unlike the rest of GE, defensive.Shares of similar companies like Medtronic (NYSE:MDT) and Stryker (NYSE:SYK) have done well this year, and receive solid, if not quite premium, valuations from the market. GE Healthcare seems similar: a solid business that should drive revenue growth and margin expansion going forward. At the least, Healthcare almost certainly is the safest business in GE's portfolio, even if that admittedly is a low bar to clear at the moment.The concern is what's really left after the sale of GE Biopharma closes in the first quarter. In 2018, GE Healthcare generated $3 billion in free cash flow. The figure excluding Biopharma drops to just $1.9 billion. Segment EBITDA (earnings before interest, taxes, depreciation and amortization) this year, based on guidance, is probably just under $2 billion excluding BioPharma. Applying a similar multiple to GE Healthcare as those applied to MDT and SYK, and the business maybe is worth $30-$35 billion.That is good news in a sense, as it suggests that, including BioPharma, Healthcare is worth over $50 billion. That's higher than my estimate, and more in line with a bull case from last year. But it's fair to wonder, with over $90 billion in debt on the balance sheet, whether that's quite enough. A MicrocosmThe Investor Day for Healthcare leaves some interesting, and difficult, questions for investors. Is a $30 billion ex-Biopharma really enough to move the needle? It's helpful, certainly, particularly given that Aviation might be worth more than $100 billion. But, including debt, even those numbers still require that investors see real value in Power and Capital.There's also the question as to what GE plans to do with the business. Before the Biopharma sale, the company reportedly was considering a spin-off of Healthcare as a whole. The Danaher deal reportedly has shelved those plans, and management didn't discuss the possibility of a spin at Investor Day. But Healthcare still is big enough, and valuable enough, probably to stand on its own, but perhaps not big enough for GE to materially change its balance sheet by selling shares. Is that worth giving up a stable, safe, source of much-needed cash flow? * 7 Impressive Stocks to Buy Over $250 Finally, from an operational standpoint, the question for Healthcare echoes that of the entire company. Are these plans really possible? GE executives projected that the company would increase spending on research and development and grow revenue and expand operating margins by at least a quarter-point annually. "Lean" operations (i.e., cost-cutting) are expected to allow GE to accomplish all of those goals.But that's a fine line to walk. The business has to cut costs, but not cut them too far. Competitors in systems too are ratcheting up their investments. Revenue growth may require some concessions on price, and thus margins, particularly with the company highlighting reimbursement pressures from Medicare.As with GE as a whole, the plans work on paper. In practice, execution will be difficult. And it's that execution that will determine whether the theoretical bull case results in real returns for General Electric shareholders. Healthcare's Investor Day highlights perhaps the one thing on which bulls and bears agree: GE still has a long ways to go.As of this writing, Vince Martin did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 8 Biggest Investing Surprises of 2019 * 7 Impressive Stocks to Buy Over $250 * 4 Small-Cap Energy Stocks Ready to Explode The post One Event Shows All the Key Hopes and Challenges for General Electric appeared first on InvestorPlace.
