|Bid||140.29 x 900|
|Ask||140.32 x 4000|
|Day's Range||137.88 - 140.55|
|52 Week Range||94.59 - 145.50|
|Beta (3Y Monthly)||0.84|
|PE Ratio (TTM)||41.10|
|Forward Dividend & Yield||0.68 (0.50%)|
|1y Target Est||N/A|
My long-time friend Martin Bayne had Parkinson's disease for decades, forcing him into nursing care in his middle-age years. The cost of his care over 20 years was enormous, unbearable by either him, his family or (more important) any of the long-term care policies he had previously been in the business of selling, evaluating and recommending as "Mr. Long-Term Care."Source: JPstock / Shutterstock.com What Bernie Madoff whistleblower Harry Markopolos is calling a "fraud" by General Electric (NYSE:GE) of just over $38 billion, enough to sink the company, is mostly the natural consequence of forcing an unlimited draw on a limited pool of funds. The Cost of Long-Term CareThat's what long-term care represents. It's not just waiting to bankrupt GE, but you and your family -- even if you think you're comfortable. It can hit at any moment, from an accident, disease, or just natural aging.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNursing home care costs an average of $245 per day. That's $1,715 per week and almost $90,000 per year. This doesn't include the costs of doctors, drugs and the occasional hospitalization. * 10 Cheap Stocks to Buy Now The companies that sell long-term care policies are aware of these costs when they quote premiums. But they haven't always been, and many carriers have gone bankrupt. So have senior care centers and hospitals. So did my friend Martin Bayne. What Immelt Did Not DoAccording to Markopolos' report, GE should have been accounting for its unsustainable obligations with reserve funds back in 2012. The whistleblower claims General Electric didn't acknowledge them until new management came in. This created a $15 billion hit that had to be spread out over seven years.This was during the time when then-CEO Jeff Immelt was transforming GE from the banking-and-entertainment giant that predecessor Jack Welch had built into an industrial enterprise. This was highlighted by the $10 billion acquisition of French power and grid business Alstom in 2015. Analysts called the Alstom deal "brilliant" but it eventually became a disaster. General Electric's GE Power has been dragging the rest of the company down ever since.But the company's refusal to account for policy costs is worse, Markopolos writes. GE is stuck with reinsurance on policies written in the twentieth century, long before the real costs were known. They have just $1,133 of premium, on average, 70% of which cover lifetime benefits for customers whose average age is now 75.Markopolos also claims that GE is hiding $9.1 billion in losses on its acquisition of what is now Baker Hughes (NYSE:BHGE), which the company closed on in June 2017. This was just four months before Immelt's sudden retirement that October. Markopolos estimates GE stock's current ratio of assets to liabilities at 0.67, once Baker Hughes' numbers are taken out of the balance sheet. The Bottom Line on General Electric StockNeither John Flannery, who succeeded Immelt as CEO, nor current General Electric CEO Larry Culp, who once headed Danaher (NYSE:DHR), caused GE's problems.Culp, who was brought in from the Harvard Business School, responded to Markopolos' accusation by buying $2 million in GE stock and calling the report "market manipulation."But I have 20 years of second-hand experience in the horrors of long-term care, of how it bankrupts everyone it touches -- those who need care, who provide care, and those who try to insure against the un-insurable costs of care.I can't speak to Baker Hughes but, to me, the long-term care section of Markopolos' report adds up. Reinsurance costs have always hung like a Sword of Damocles over GE stock's books, perhaps even before Immelt became CEO in 2001.If you want to get to the bottom of this, ask Jack Welch when GE wrote that reinsurance. Meanwhile, get out of General Electric stock if you can.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Long-Term Care Costs Might Kill General Electric Stock appeared first on InvestorPlace.
The filing came after analyst Stephen Tusa, a well-known GE pessimist, published a note maintaining his target price for GE stock at $5 per share, well below where it is now trading.
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...
General Electric (NYSE:GE) stock is reeling after an earnings disappointment. Shares in the conglomerate have fallen more than 10% since announcing earnings July 31. The GE stock price opened at $10.76 on July 31, and has since slid to a close of $9.57 on August 6.Source: Shutterstock With quarterly sales down 1%, and total orders down 4%, the turnaround led by CEO Lawrence Culp remains a work in progress. Since 2018, investors have tried to call a bottom in GE stock. Some said the bottom would be $10 a share, only to see the stock fall as low as $6.51 a share in December. While shares have appreciated since the start of 2019, this recent earnings disappointment calls into the question the rebound of General Electric stock. * 5 Cheap Stocks to Buy Now That the Fed Cut Rates So what is the verdict on GE stock? Is the company's turnaround plan still in motion, or will the company experience additional headwinds? Let's take a closer look, and see whether investors can expect upside in the GE stock price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Closer Look at General Electric StockAs mentioned above, GE's second quarter 2019 earnings failed to meet expectations. The year-over-year revenue declines were largely attributable to issues in the Power segment. The unit saw sales drop 25% from the prior year's quarter. Segment profits were down 71%. But GE's other units had performance issues of their own. The company's Renewable Energy segment saw significant revenue growth (26% year-over-year), but posted a segment loss of $184 million. Aviation saw sales bump up 5%, but segment profits were down 6% from the prior year's quarter.Healthcare was the only segment that saw an improvement in operating earnings, with quarterly segment profit up 3% from the second quarter of 2018. The Oil & Gas unit saw a 7% revenue increase, but a 2% decline in segment profit. GE Capital, the company's most complex and troubled segment, was able to trim losses from continued operations. Combined with gains from discontinued operations, GE Capital earned $148 million in the second quarter.But despite this tepid performance, the company has improved their outlook for 2019. In March, the company projected revenue growth in the low-to-mid single digits for the year. Now, the company believes sales will grow in the mid-single digits. The adjusted EPS (earnings-per-share) forecast has improved from a range of 50 cents to 60 cents, up to a range of 55 cents to 65 cents. GE even reduced their projected restructuring costs from $2.4-$2.7 billion, down to $1.7-$2 billion.In the short-term, GE stock faces headwinds. Long-term, the Culp-led turnaround is still in play. Does this make General Electric stock a buy today? Let's take a look at valuation and see if investors should buy at the current GE stock price. GE Stock Valuation: In Line With PeersGeneral Electric stock currently trades at a forward Price-to-Earnings (Forward P/E) ratio of 21.7. The company's trailing twelve month Enterprise Value/EBITDA (EV/EBITDA) ratio is 13.5. Here are the valuations of GE's peers in the industrial conglomerate space:Danaher (NYSE:DHR): Forward P/E of 24.7, EV/EBITDA of 21.9Honeywell (NYSE:HON): Forward P/E of 18.8, EV/EBITDA of 14.3Textron (NYSE:TXT): Forward P/E of 12, EV/EBITDA of 93M (NYSE:MMM): Forward P/E of 16.2, EV/EBITDA of 14United Technologies (NYSE:UTX): Forward P/E of 15, EV/EBITDA of 12The valuation of GE stock is in line with peers. GE's EV/EBITDA number may be skewed by the GE Capital unit, which utilizes a great deal of leverage. Nevertheless, investors are not paying a premium for General Electric stock. On the other hand, they are not getting a tremendous bargain. But with the company in the midst of a turnaround, operating earnings could materially improve, helping to boost the GE stock price.But with recent stumbles, can Lawrence Culp successfully pull off a turnaround? As the former CEO of Danaher, investors have high expectations for his skills as an operator. Danaher saw significant long-term stock appreciation thanks to its ability to generate high operating margins from mature industrial businesses. Can Culp do the same for GE? Bottom Line: GE Stock Has PotentialGeneral Electric stock has potential. But many stocks have "potential." The question is whether the company can pull off a turnaround, remaking itself as a high-margin industrial conglomerate. If Culp can do for GE what he did at Danaher, the company could see not only improvements in earnings, but an enhanced stock valuation. This means significant upside in the GE stock price.For investors entering the stock today, do not expect things to turn around by next quarter. In fact, I would not be surprised if GE stock took another tumble. But for long-term investors looking to make a contrarian bet, GE is a strong opportunity.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Internet Stocks Getting Hammered * 6 Big Growth ETFs to Buy For the Second Half of 2019 * 5 Cheap Stocks to Buy Now That the Fed Cut Rates The post Expect to Wait for General Electric Stock to Turn Around appeared first on InvestorPlace.
ITT's second-quarter earnings and revenues rise year over year on the back of solid performance across Industrial Process and Connect & Control Technologies segments.
Macquarie Infrastructure's (MIC) second-quarter earnings decline year over year on account of higher selling, general and administrative and depreciation costs and rise in interest expenses.
General Electric's (GE) second-quarter 2019 earnings decline year over year due to weakness in sales and margins. However, earnings beat estimates by 41.7%. It raises earnings view for 2019.
General Electric Co. Chief Financial Officer Jamie Miller is leaving the Boston-based company, though she will stay on temporarily while it searches for her successor. GE (NYSE: GE) announced Tuesday morning that Miller was transitioning out of the role. The company gave no reason for her impending departure.
General Electric (GE) is slated to report its Q2 results on Wednesday. Let’s look at what analysts expect from the company in the second quarter.
Heading into General Electric's (NYSE:GE) second-quarter results, due to be reported on Wednesday before the market opens, there's a good chance that its quarterly results will not beat expectations. But for longer-term investors, the risk-reward ratio of GE stock is extremely positive, as GE has multiple, powerful, long-term catalysts, and the company's valuation is attractive.Source: Shutterstock A few near-term headwinds will probably prevent GE's Q2 results from coming in above analysts' average estimates.Specifically, Boeing (NYSE:BA) may temporarily suspend production of its 737 Max plane and warned that its new 777X plane could be delayed because of problems that GE is having with its new GE9X engine. Those moves by Boeing may have stymied the results of GE's Aviation unit last quarter, preventing its overall Q2 results from beating expectations.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, General Electric's Renewable unit is being hurt by the looming reduction of the federal investment tax credit for wind energy projects in 2020 to 26% from 30% this year. Finally, GE's healthcare business is suffering from "separation costs, supply chain finance transition and compensation timing." Given all of those headwinds, GE's overall Q2 results may even come in slightly below analysts' average estimates. And in the short run, mediocre Q2 results could cause GE stock to retreat meaningfully. GE Stock Has Long-Term TailwindsBut over the longer term, General Electric stock has multiple, powerful tailwinds. Many analysts and pundits have suggested that General Electric is poised to go bankrupt or disappear. But the company is very unlikely to collapse, as its CEO, Larry Culp, has said that it's " 'making a lot of progress' on meeting its goals relative to reducing debt." * The 10 Best Index Funds to Buy and Hold In another article, published in January, I noted that $26 billion of GE's debt is slated to mature this year in 2020. I estimated that the company could raise $25 billion of cash from selling assets. The company now looks poised to exceed that estimate, as it agreed to sell its biopharma unit to Danaher (NYSE:DHR) for $21.4 billion, while it's reportedly in talks about selling its air-leasing unit for $4 billion and it has agreed to unload a small part of its stake in Baker Hughes (NYSE:BHGE) for another $4 billion.In June, another InvestorPlace columnist, Luke Lango, pointed out that "GE's Aviation business alone could be worth more than $70 billion." But the market cap of GE stock now is only $91 billion, indicating that investors still have doubts about the long-term viability of GE. As those doubts continue to dissipate, the GE stock price will likely rise much further.The company's huge Power and Aviation businesses are showing tremendous signs of improvement and have powerful, upcoming catalysts. As I pointed out in a previous column, in Q1:"[T]he value of (Power's) organic orders, i.e. its orders excluding acquisitions and divestments of units, rose 14% year-over-year, while its sales fell only 4% YoY. That compares with a 19% YoY decline in orders in Q4 and a 25% YoY plunge in revenue."Meanwhile, in-line with my previous predictions, natural gas usage in the U.S. is actually increasing significantly, meaning GE stock bears' prediction of continuing decline in its use has been inaccurate. And, interestingly, Los Angeles, one of the nation's most left-wing cities in one of its most left-wing states, is looking to stop using three natural gas plants, but plans to use a new, $865 million gas plant.So natural gas is quite alive and well in the U.S., and GE's Power unit, which sells gas turbines and other equipment for natural gas plants, is poised to benefit from that fact. And as I've pointed out in the past, increased production of electric cars, data centers and marijuana will meaningfully boost electricity usage in the U.S. and other nations, significantly improving Power's results.Add to that the fact that Culp, who's universally admired for his management acumen, has said that he's working to improve the responsiveness of Power to its customers. * 7 Stocks to Buy That Save You Money Aviation, meanwhile, is benefiting from non-cyclical increases in the demand for airplanes from emerging economies. Its free cash flow its expected to be flat at around $4.2 billion this year and next year, before rising in 2021. In-line with that forecast, the unit received $55 billion of new orders at June's Paris Air Show, up from $31 billion in 2017. The Bottom Line on General Electric StockGeneral Electric stock is facing some short-term problems that will probably prevent the company's Q2 results from beating expectations. Still, the company's longer-term positive catalysts, along with the favorable valuation of General Electric stock, make the risk/reward ratio of GE very favorable. As a result of these upbeat catalysts, the company could also raise its longer-term guidance on Wednesday.As of this writing, Larry Ramer did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Semiconductor Stocks to Buy for Your Inner Geek * 7 Stocks to Buy That Save You Money * 4 Stocks to Sell Now The post General Electric Stock Has Short-Term Headwinds, Long-Term Tailwinds appeared first on InvestorPlace.
It's not good when even Warren Buffett loses patience with a company, but that's what's happened to IBM (NYSE:IBM) and IBM stock. Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsAlthough IBM stock was up 35% this year through July 24, including dividends, IBM has become the poster child for lack of innovation. No matter what it does to alter its course and get with the times, the investing public doesn't regain faith in its leadership. * 7 Oversold Stocks To Buy Right Now Investors' lack of faith in IBM stock is clear because its five-year annualized return is -1.8%, significantly worse than the 13.7% total return for the Morningstar U.S. Market fund over the same period. But even better evidence was provided by a comment on a recent Yahoo Finance article about IBM. "IBM is Microsoft under (former MSFT CEO Steve) Ballmer. They need new leadership to reinvigorate the company's culture and direction. Right now, it doesn't matter who they buy or what they develop; the culture is one of stagnation vs. innovation," wrote B, a Yahoo Finance reader. Well, at least Ballmer's NBA team, the Los Angeles Clippers, got Kawhi Leonard. All is forgiven, Steve. But seriously, comments just like that one are very revealing. There is no love lost for IBM CEO Ginni Rometty.I recommended that IBM move on from Rometty at the beginning of 2018. The company's acquisition of Red Hat did little to change my mind. It's never paid anywhere close to $34 billion for any of its acquisitions. The deal was a "Hail Mary" by Rometty. She's a big part of the reason for the company's stagnation, in my opinion. But I digress. Approximately 24 comments in, someone with the screen name Willie Fistergash suggested that IBM should merge with General Electric (NYSE:GE).Crazy, right? Maybe so, but it does have some merit. Here's why. Larry Culp's a Better BetGE stock is another name I've had very little use for, but now that Larry Culp's taken the helm, I've become a little more curious about GE stock.After all, Culp ran Danaher (NYSE:DHR) for 14 years from May 2001 to March 2015 before taking some time off from being a CEO. During Culp's 14-year reign at Danaher, the company's stock gained 514% or nearly 20% on a compounded annual basis. That's pretty darn good. The owners of GE stock would obviously be quite pleased if he could repeat that performance. I suppose it's one reason GE's board is willing to pay him up to $300 million, in an effort to boost GE stockI recently wrote that the owners of GE stock should take profits -- it's up 44% in 2019 -- rather than continue to hold their shares in the hope that Culp can reignite GE's cash flow machine. I was basing a good deal of my negative sentiment on the analysis of analyst Stephen Tusa, who was the first analyst to become bearish on GE stock back in May 2016 and continues to be skeptical about the company, despite all of the moves Culp has made to slim it down to a few healthy operating segments. The $21-billion sale of GE's biopharma business to Culp's old company is a textbook example of a company using insider knowledge to extract premium dollars for a business that's no longer useful to it. What Does This Have to Do With IBM?Larry Culp is 55 years old. Ginni Rometty is 61.Larry Culp is a proven winner. Ginni Rometty has done nothing in her 7.5 years as IBM's CEO to demonstrate that she has the technology chops or the leadership qualities necessary to reignite the company's former penchant for innovation. I'm not saying IBM hadn't already lost its innovation spark before Rometty became CEO in January 2012, but she's been at Big Blue for most of her career. If she was going to make IBM great again, she would have already done it. The odds, however, of IBM and GE merging are extremely minuscule; I have a better chance of becoming the president of the United States, even though I was born in Canada and still live there.But, for long-time shareholders or employees of IBM, the idea of someone like Larry Culp taking charge is an exciting one. Unfortunately for IBM, Culp's already got his hands full with his efforts to boost GE stock further. Should IBM merge with GE?It's not the worst idea in the world. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Oversold Stocks To Buy Right Now * 7 Stocks to Buy Upgraded by Wall Street * 7 Marijuana Stocks With Critical Levels to Watch The post Would IBM Stock Be Lifted by a Merger With GE? appeared first on InvestorPlace.
If you're looking for a speculative bet on a well-known company, few names fit that bill more so than General Electric (NYSE:GE). Over the past few years, I have twice been dazzled and disgusted with GE stock. In other words, I've had some success with calling shares correctly, but I'll freely admit to some failures as well.Source: Shutterstock In my last article about General Electric stock, I gave a fairly comprehensive look at the bull and bear case. Ultimately, I concluded that shares presented a risky but compelling opportunity. With a healthy mix of both tailwinds and headwinds, GE comes down to market sentiment. For the last several months, the trajectory has been mostly flat. Thus, the bad news might be baked in.But here's the worrisome part from a technical perspective. GE stock is up 44% year-to-date. However, since late February, shares haven't moved much. Thus, a very real possibility exists that the bears will punish this pensive price action. We have already witnessed hefty losses in 2017 and 2018. No one would be surprised if the equity dropped further.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Sell This Summer Earnings Season That said, General Electric stock is roughly only a third of its January 2017 market value. It's hard for me to imagine a repeat bout of such intense volatility without some fresh, persuasively bearish news.As such, I think the bullish argument has some merit, but only if you're willing to accept the risks. Here are three reasons why GE stock could stage a comeback: GE Is Under New ManagementI realize it's an overly-covered topic. For almost two decades, General Electric languished under former CEO Jeff Immelt's leadership. Naturally, GE stock also eroded, but not necessarily in a linear fashion.And this latter point represents a supporting argument for Immelt. After all, General Electric stock experienced two major shocks: one following the tech bubble and the other following the 2008 financial crisis. Neither event is Immelt's doing.That said, the optics ultimately derail the former exec's case. When Jack Welch gave the keys to Immelt, General Electric was a vibrant, robust organization. Today, it's a sad shell of its former self.Nevertheless, part of the American capitalist ethos involves coming back from the ropes. And if anyone can bring back GE stock from the grave, it's current CEO Larry Culp. During his time at Danaher (NYSE:DHR), Culp turned around a confused, convoluted organization into a lean fiscal machine.What I didn't know is that Danaher utilized an operational system called lean manufacturing, which emphasizes "continuous quality improvement and low working capital." Toyota (NYSE:TM) and other Japanese firms pioneered this process following World War II.Surely, if war-torn nations can spark a comprehensive recovery, then a resurgent General Electric stock isn't completely irrational. It will take patience. However, those willing to exercise it might enjoy a profit windfall. Power Isn't DeadSeveral hours prior to writing this article, I experienced a sudden blackout. Immediately, I blamed Tesla (NASDAQ:TSLA) and the rise of electric vehicles. EVs must get their power from somewhere, and that somewhere is our already-strained electrical grid.But what does this have to do with GE stock? Simply, the underlying company has two core businesses: aviation and power. Regarding the former unit, most recognize that this is General Electric's money-maker. While Culp has happily divested several businesses to drum up much-needed cash, he didn't abandon aviation.Last fiscal year, this unit rang up $30.6 billion in revenue. Take this away and you start having some serious problems. Fortunately, the overall narrative behind aviation is largely bullish, even considering Boeing's (NYSE:BA) grounding of their 737 Max jetliners.But the second-biggest revenue source is power. Last year, it brought in $27.3 billion in sales. That's great, but according to critics, the world is rapidly shifting toward clean and renewable energy sources.I agree about the shift, but I disagree with the implication. While we're headed toward a renewable future, that future won't come soon. I'll step out on a limb and say this: even if you're a young Generation-Z member, the transition won't happen in your lifetime.That's because our entire infrastructure is based on fossil fuels. Actually, this is one of my major criticisms about EVs. The tech is wonderful but if everyone jumped on board, it will cripple our electrical grid.Plus, fossil fuels are now plentiful and thus, incredibly cheap. Even MIT and the University of Chicago admit that "market forces alone won't reduce the world's reliance on fossil fuels for energy."Stated differently, fossil fuels are here to stay, and that directly benefits General Electric stock. GE Stock Has Found a BottomFinally, I arrive at my technical argument for General Electric stock: I believe shares have found a bottom.As I mentioned earlier, the bears will counter my point by emphasizing GE's flat trajectory. And I won't dismiss that reasoning. However, in most cases, people don't trade the markets just to watch a stock move sideways. Eventually, it will move decisively in one direction or another.I concede that the bullish arguments aren't that strong to skyrocket GE stock right now. This will require patience and tolerance to turbulence. At the same time, the bearish narrative isn't convincing enough to drop shares more than they have. Otherwise, we would have seen that decline.If I haven't already mentioned it, General Electric is incredibly risky. However, with a proven management team and an under-appreciated business unit, this is a name worth gambling on.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 5G Stocks to Connect Your Portfolio To * 7 Stocks to Sell This Summer Earnings Season * 6 Upcoming IPOs for July The post 3 Reasons to Place Your Bet on GE Stock appeared first on InvestorPlace.
3M's (MMM) second-quarter 2019 results suffer from forex woes, adverse impact of divestitures and weak organic sales. However, its earnings and sales surpass respective estimates.
EVP of Danaher Corp (30-Year Financial, Insider Trades) Daniel L Comas (insider trades) sold 68,379 shares of DHR on 07/19/2019 at an average price of $142.05 a share. Continue reading...
Until February, General Electric (NYSE:GE) stock was fairly volatile and fell more often than not. Yet the shares have stabilized in recent months. In fact, General Electric stock has been in a tight range, trading between $9 and $10.50 or so.Source: Shutterstock On July 31, when GE reports its second-quarter results, there's a good chance General Electric stock will break out of its range. * 10 Stocks to Buy From This Superstar Fund Keep in mind that the expectations of Wall Street analysts are muted. Analysts, on average, expect GE's Q2 revenue to come in at $28.57 billion, down from $30.1 billion in the same period a year ago. The consensus outlook calls for earnings per share of 12 cents, down from 19 cents.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut the owners of GE stock will want to get more color on the progress of the turnaround efforts of GE under its new CEO, Larry Culp. For the most part, it looks like he has a realistic plan, which is focused on asset sales and spin-offs. No doubt, GE really needs a much more focused organization. The Issues Facing General Electric StockGE has lots of moving parts, and it continues to suffer from major challenges and headwinds. For example, UBS analyst Damian Karas recently downgraded GE stock to "neutral" with a price target of $11.50, down from $13.Part of his concern is the fall in interest rates. He expects the drop of interest rates to reduce the valuation of GE stock by $1 per share. But the company is facing a host of other swirling issues, which are tough to quantify.For example, the company has litigation exposure as well as an enormous debt load, which stands at $105 billion. Note that GE also has $75 billion of so-called "other liabilities," such as pensions and long-term-care obligations. In other words, the company's total liabilities are close to two times the current market cap of GE stock.Another one of its major problems is its Power business, which accounts for about 20% of its overall revenues. Unfortunately, there is intense competition in the sector, and demand for power-plant components has continued to lag. Consider that Chinese operators are also gearing up to make an aggressive play for the business.Stephen Tusa, who is an analyst at JPMorgan, has noted: "We believe a full accounting of the situation with a closer look at the data, even a rudimentary review, supports our view that (the Power unit of) GE is indeed losing market share…"In 2017 and 2018, Tusa's bear call on GE stock was accurate. What's more, he remains dour, with his price target on General Electric stock standing at a mere $5 per share.Interestingly enough, even GE's Aviation business is looking dicey right now, despite its traction at the Paris Air Show recently. Boeing's (NYSE:BA) grounding of its 737 Max could last a while. BA, a GE customer, also will likely miss the deadline on its 777X widebody plane.If GE's Aviation business, which accounts for about 60% of GE's segment-level profits, slows, GE's turnaround could be derailed. Tusa believes that such a slowdown is already occurring. The Bottom Line on General Electric StockCulp seems to be making the right moves. He certainly is a proven leader, as shown by his standout performance while he was CEO of Danaher (NYSE:DHR), which was also a sprawling and complex organization.But for GE, Culp has indicated that 2019 will be a "reset" year. This means that the owners of GE stock should expect choppiness and probably some negative surprises. For instance, Culp has already said that the 737 Max's situation is a "new risk."Thus, for the meantime, GE stock may continue to languish, and investors should probably be in no rush to buy it.Tom Taulli is the author of the upcoming 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 * 10 Stocks to Buy From This Superstar Fund * 7 Stocks to Buy This Summer Earnings Season * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Can GE Stock Get Out of Its Rut? appeared first on InvestorPlace.
Crane's (CR) second-quarter 2019 results gain from a decline in costs and expenses, and hence, better margin profile. It declares a dividend to be paid in September.