GE - General Electric Company
| Previous Close | 9.42 |
| Open | 9.46 |
| Bid | 9.36 x 43500 |
| Ask | 9.34 x 43500 |
| Day's Range | 9.34 - 9.54 |
| 52 Week Range | 6.40 - 13.25 |
| Volume | 55,005,373 |
| Avg. Volume | 65,892,534 |
| Market Cap | 81.773B |
| Beta (3Y Monthly) | 1.13 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -2.16 |
| Earnings Date | Oct 30, 2019 |
| Forward Dividend & Yield | 0.04 (0.43%) |
| Ex-Dividend Date | 2019-09-13 |
| 1y Target Est | 10.76 |
- Investor's Business Daily
GE Rival Sees More Delays Fixing Boeing 787 Engine
Rolls-Royce needs more time to fix Trent 1000 jet engine problems, further holding up plans to get Boeing 787 Dreamliners off the ground.
- Moody's
General Electric Company -- Moody's announces completion of a periodic review of ratings of General Electric Company
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of General Electric Company and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
- Barrons.com
GE Is Hunting for a CFO. It Needs a Rock Star to Fill the Job.
Gordon Haskett analyst John Inch, who is bearish on the stock, thinks filling the slot will be harder than investors think. Not everyone on Wall Street agrees.
- Schaeffer's Investment Research
GE Puts Could Pay Off Big
GE stock has run up to its 120-day moving average
- InvestorPlace
There Are Still Ways to Profit From GE Stock in the Short Term
General Electric (NYSE:GE) is an iconic American company that has fallen on hard times. Experts from both sides of the fence are passionate about their perspective so it makes for good fodder for investors. It has also become somewhat of a joke on Wall Street. Nevertheless, GE stock still has potential and it does have a future ahead of it provided current management sticks around long enough to finish the turnaround they started.Source: Jonathan Weiss / Shutterstock.com But it may not be necessary to wait until then to profit from General Electric stock. There are ways to trade it in the meantime.At best, the fundamentals are murky. There are plenty of analysts on Wall Street who claim to be experts on it but I doubt that anyone really knows for sure. Most of the traditional metrics are skewed but the price-to-sales ratio doesn't lie. The company still has enough business to help it achieve its goals turnaround goals provided they maintain a healthy balance sheet and shed assets that are part of the future GE.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI'm not an expert at it but I know enough to not completely call it dead yet. Last time I wrote about trading it up, GE rallied 15%. This is a broken stock for sure, and a badly bruised company, but it is undergoing renovations at the present time. So investors can do one of two things. First, they can take a leap of faith and buy the GE stock to hold for the very long-term. The thesis here is simple: Give it time, and management will accomplish the repairs necessary to bring it back to better days. They will not bring back all its prior glory. * 7 Triple-'F' Rated Stocks to Leave on the Shelf The second way is to actively trade GE stock for shorter-term profits. This one requires less emphasis on fundamentals and rely heavily on technicals. The GE chart carries enough clues to know where the important lines lie. These days machines do most of the trading so the technicals matter more than ever. A lot of fundamental traders discount them as mambo-jumbo, but their guidance is undeniable.The price action unfolds according to repetitive patterns. So it would be foolish to ignore their forecasting skills. This is not to say that I can guess the direction of the next move, but I can confidently identify the important levels that will be the triggers or end points. And that fact will hone timing and minimize trading mistakes. Plug Your Nose and Buy General Electric Stock.The August market-wide correction caused GE stock price to fall 30% from top to bottom. Luckily, the bulls were able to find footing and recover exactly half of it. This is not a coincidence -- it occurs time and again in most charts. What makes this level important is that it has been pivotal all year. While the rally was good news, hitting a pivotal level means that GE stock is likely to face resistance here on the way up.Moreover, this is also the 50% retracement level from last November's correction. So clearly it will not be easy for the bulls to cut through it and that's okay. Because normal price action suggests that most rallies will hit resistance levels and stall to consolidate within a tight range. This allows the bulls to build up a base so they can then finish the rally with a third leg higher.In this case, GE would target $11 per share or higher. There will be resistance along the way at $10.25 and $10.75. For that to happen, onus is on the bulls to hold at or above $9 per share so they can achieve this plateau of consolidation that will serve as footing for the next leg higher.This opportunity is purely technical therefore trading it will require setting tight stop losses and sticking to them. Otherwise we would risk turning a trade into an investment. Depending on investor risk appetite, the stop-loss levels are between $9.2 and $8.9 per share. Conversely, a close above $9.6 per share should invite more buyers to finish the recovery rally from the August correction in GE stock.On the shorter time frames, GE stock is sporting what seems like a head and shoulder pattern with a neckline at $9.40. If it fails, GE risks losing another 20 cents from there before it hits the next support level. The good news is that so far the buyers have stepped in to support it. GE stock will need the help of the general markets because it cannot rally on its own.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Triple-'F' Rated Stocks to Leave on the Shelf * 10 Excellent Stocks to Watch for 2020 and Beyond * 7 Consumer Stocks to Buy in an Uncertain Market The post There Are Still Ways to Profit From GE Stock in the Short Term appeared first on InvestorPlace.
- Market Realist
Could Boeing Benefit from Airbus’s ‘Back’ Pain?
Some airlines have been forced to keep the back seats empty on Airbus’s (EASDY) A320neos due to a problem similar to Boeing (BA) 737 Max 8’s
- Zacks
4 Stocks to Focus on Global Biotechnology Reagents Market
Increased use of reagents in the field of research, bioscience and genetics is pushing the biotechnology reagents market higher.
- InvestorPlace
Ma’s Departure and the Trade War Will Not Stop Alibaba Stock
Alibaba (NYSE:BABA) began a new era this month. Founder Jack Ma stepped down as chairman, a role that now belongs to current CEO Daniel Zhang. Although leadership transitions always bring some degree of uncertainty, it so far does not look like a factor that will hurt Alibaba stock.Source: zhu difeng / Shutterstock.com However, several external issues have held down BABA stock. Unfortunately for traders, these factors will probably continue to hamper Alibaba Group for the foreseeable future. Still, as long as Mr. Zhang preserves one thing, investors can earn substantial returns in Alibaba stock. Jack Ma's Departure Changes LittleJack Ma's has taken a gradual approach in stepping away from the company he founded. He vacated the CEO position in 2013 but remained chairman of the board until this month. Mr. Ma will retain a seat on the company's board. Still, the company now belongs to Daniel Zhang, a man who has held the CEO position since 2015.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Many worry about the change in leadership. However, Alibaba made the transition a years-long process that has involved little in the way of surprise. Thus far, it looks like it will resemble that of Tim Cook taking over at Apple (NASDAQ:AAPL) as opposed to the transition that preceded Jeff Immelt's disastrous tenure at GE (NYSE:GE). Since Zhang has become a known quantity, I do not see Alibaba making radical changes. Likewise, I do not see any significant revisions in the case for or against Alibaba stock.To be sure, one thing has remained the same about Alibaba Group regardless of leadership. The best thing about Alibaba stock is its connection to China. Likewise, the worst thing about BABA stock is its connection to China. Profit Growth Boosts BABALike it or hate it, Alibaba stock is a growth machine. Analysts forecast earnings increases of 23.3% this year and 26% the next. They also predict revenue will grow by 31.9% and 29% in the same respective periods.Management can take much of the credit for these increases. Acquisitions such as the recent purchase of the NetEase (NASDAQ:NTES) e-commerce platform Koala merely enhance these increases long term. Also, with the continuing growth of China's middle class, BABA stock to maintain or increase its growth. More importantly, these increases come amid the current challenges facing Alibaba. Thus, the stock should deliver significant returns to investors even if external conditions do not improve. Do Not Expect a High MultipleHowever, investors also need to remember that Alibaba stock is a Chinese equity. Hence, it has seen its potential held back from the U.S.-China trade war. It also suffers from more internal political disputes. In all likelihood, the protests in Hong Kong led to Alibaba delaying its listing on the Stock Exchange of Hong Kong. Moreover, the company cannot directly sell stock in Alibaba to Americans. For this reason, BABA stock is an ownership stake in a Cayman Islands-based holding company entitled to the company's earnings.Do these factors hold Alibaba Group down? Absolutely. Many traders prefer to minimize politics. Also, while I do not expect Alibaba to renege on agreements that created the holding company supporting BABA stock, one cannot escape the fact that Alibaba stock is not an ownership stake in Alibaba.Hence, these factors have likely stopped Alibaba stock from achieving the triple-digit price-to-earnings (P/E) ratios seen with other growth tech stocks. Instead, the stock trades at a more modest forward P/E ratio of around 20.8. Given the doubts some investors hold about China, I do not expect this multiple to improve significantly. Fortunately for Alibaba stock bulls, it does not have to get better. The Bottom Line on Alibaba stockThe negatives will not stop the growth of Alibaba stock. While the trade war and conflict with China make for great headlines, traders have long since priced these doubts into BABA.Would an end to the trade war help? Since the beginning of the trade dispute hurt Alibaba stock, it stands to reason that BABA may recover some of that lost value. However, the status of Alibaba Group as a Chinese company, as well as the nature of Alibaba stock itself, will probably prevent it from achieving a significantly higher valuation. * 8 Dividend Stocks to Buy for a Recession Still, none of those issues matter as much as some believe. As long as the company can continue its massive growth, traders can still earn significant returns even if the multiple never expands.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Stocks to Buy for a Recession * 10 Companies Making Their CEOs Rich * The 7 Best S&P 500 Stocks of 2019 So Far The post Ma's Departure and the Trade War Will Not Stop Alibaba Stock appeared first on InvestorPlace.
- GuruFocus.com
6 Tanking Stocks in Gurus' Portfolios
British American Tobacco makes the list Continue reading...
- Bloomberg
Peltz Confesses ‘Big Mistake’ in Holding On to GE Stake Too Long
(Bloomberg) -- It’s the oldest rule in the investing book: Buy low and sell high. But it isn’t easy, even for a Wall Street celebrity like Nelson Peltz, who acknowledges a pang of regret on a high-profile trade.Trian Fund Management, the activist firm he co-founded, took a $2.5 billion stake in General Electric Co. in late 2015, when the stock was hovering in the mid-$20s. Both companies trumpeted the move as an endorsement of a stagnant U.S. icon ready to flourish again.Instead, GE has been battered by operational missteps, weak cash flow and crippling debt. Two chief executive officers have left since Trian invested, and the current boss has spent his first year selling assets, slashing the dividend and trying to shore up the balance sheet. While GE briefly rose in the months following Trian’s investment, peaking near $32 a share in July 2016, it has fallen as much as 80% from there.“We bought the stock at $23, right. It went up to $32, we sold a third of our position,” Peltz said Thursday at CNBC’s Delivering Alpha conference. “That was our big mistake. We should have sold three-thirds of our position.”GE climbed 1% to $9.48 at 1:01 p.m. in New York, extending a moderate rally since shares tumbled in December to the lowest in almost a decade. Peltz called current GE CEO Larry Culp a “star.” And he touted changes on the board, where Trian won representation in 2017.Whether there will ever be a chance to sell GE at a higher price remains to be seen.“We make a mistake about once every 25 years,” Peltz said. “So you guys can relax for another 22 years, everything is going to be cool.”\--With assistance from Scott Deveau and Hema Parmar.To contact the reporter on this story: Richard Clough in New York at rclough9@bloomberg.netTo contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Tony RobinsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Barrons.com
Siemens Healthineers Is Downgraded. Here’s What It Might Mean for GE.
Health-care equipment provider—and GE competitor—Siemens Helathineers caught an analyst downgrade Thursday. That also represents a small bit of bad news for GE.
- Reuters
Activist investor Peltz says GE CEO Culp is doing a good job
"Larry Culp is a star," said Peltz who runs $9-billion hedge fund Trian Partners, adding "he knows how to run a business. Peltz was speaking at the CNBC Institutional Investor Delivering Alpha conference in New York roughly four weeks after forensic accountant Harry Markopolos issued a report in August alleging that GE is concealing deep financial problems.
- Benzinga
Jim Cramer Shares His Thoughts On General Electric, Micron And More
On CNBC's "Mad Money Lightning Round," Jim Cramer said Trade Desk Inc (NASDAQ: TTD ) is oversold, but it's very volatile. Cramer needs to do more work on Zynex Inc. (NASDAQ: ZYXI ). He likes ...
- InvestorPlace
AT&T Stock Is Doomed to Become the Next GE
For years, AT&T (NYSE:T) stock has been a "yield trap." This is a stock who's dividend is too good to be true. T stock's dividend yield of 51 cents per share, currently yielding 5.5%, has been thought unsustainable by many analysts. Since AT&T stock has 7.31 billion shares outstanding, the dividend costs almost $15 billion per year to maintain.Source: Roman Tiraspolsky / Shutterstock.com To that $15 billion, add interest on $159 billion of long-term debt as of June 30, plus a capital budget of $23 billion and something's got to give.That something, according to recent media reports, could be DirecTv, the satellite service. DirecTv cost AT&T $49 billion in 2015 but has lost 2.5 million subscribers in the last year. Trouble is, neither a spin-off nor a sale to DISH Network (NASDAQ:DISH) would bring in anywhere near $49 billion.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars AT&T CEO Randall Stephenson's planned glorious retirement next year is beginning to look more like former General Electric (NYSE:GE) CEO Jeff Immelt's more ignominious exit. The DebtAs I wrote back in July and repeated after Elliott Management proposed big changes this month, AT&T has an enormous technology debt, in addition to its financial debt.Take a walk outside and you'll likely see some of it. Those copper wires hanging on those old wooden poles are obsolete. Telephony is dying. International long distance calls are free with Skype, and even teleconferencing is free with Zoom (NASDAQ:ZM).Even when upgraded with fiber to deliver TV, the value of AT&T's physical network is deteriorating. That's in part thanks to AT&T itself, which is in the process of upgrading its mobile service to 5G. But the value of that is open to question, as Alphabet (NASDAQ:GOOGL) makes its Google Fi a better deal.Do I have to mention the plans of Amazon.Com (NASDAQ:AMZN) CEO Jeff Bezos to create global internet access with low-Earth orbit satellites? The Mistake of the CenturyIn a 2016 New York Times profile of Randall Stephenson, he ordered his brother, a career lineman, to learn about the cloud.But Stephenson didn't buy or build cloud. He sold the company's data centers in 2018 and is putting his operations on the IBM (NYSE:IBM) cloud.Stephenson decided cloud was too expensive and risky early in the decade while Facebook (NASDAQ:FB) was investing in cloud before it had the cash flow to justify it. Today Facebook is worth twice AT&T.The lack of cloud investment was as big a mistake as GE's decision to buy Alstom, a French turbine maker, in 2015. That was hailed as the "best deal in a century," but GE Power has since made GE a shadow of its former self.Stephenson's plan was to use the content agreements of DirecTv, later the content of Time Warner, to keep people on his services at high and rising prices. He assumed he could license that content to other providers, also for high and rising prices. Since the Time Warner purchase Stephenson has been pushing other players hard, dropping services like NFL Network and even threatening to shut off Disney's (NYSE:DIS) ESPN. The company is also being accused of setting up fake DirecTv accounts, a charge reminiscent of the Wells Fargo (NYSE:WFC) scandals. The Bottom LineElliott Management wants to rearrange deck chairs on the Titanic. The appearance of change, the sale of some assets, could boost AT&T's stock price and let Elliott exit its $3.2 billion investment with a profit.But the problems would remain. The technology debt would remain. Much of the financial debt would remain. * 8 Dividend Stocks to Buy for a Recession AT&T is doomed.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN.The post AT&T Stock Is Doomed to Become the Next GE appeared first on InvestorPlace.
- Zacks
General Electric's (GE) Unit Rolls Out DeltaVision OMX Flex
General Electric's (GE) latest microscope DeltaVision OMX Flex is capable of capturing cell division details with high precision and contrast.
- Zacks
General Electric (GE) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, General Electric (GE) closed at $9.38, marking a +0.21% move from the previous day.
- MarketWatch
Five stocks to consider buying as the industrial sector stages a rebound
The result has been a volatile year for top industrial firms that do business in Asia. Perhaps nothing illustrates this give-and-take better than the iShares U.S. Industrials ETF (IYJ) which has boomeranged from about $160 in September 2018 to a low of under $120 in early 2019 and then back to crest the $160 mark once more and set a new all-time high. If you’ve been holding the iShares U.S. Industrials ETF (IYJ) for the past 12 month, then you may have very little to show for it.
- Zacks
Baker Hughes to Eliminate GE Reference From Ticker & Name
Baker Hughes (BHGE) will eliminate references of General Electric Company (GE) from its name as the U.S. industrial conglomerate has lowered its ownership stake in the oilfield service firm.
- Barrons.com
GE Stock Bulls Say the Worst Is Over. One Prominent Bear Says They’re Wrong.
Analysts remain polarized about the prospects for General Electric. Wall Street target prices range from $5 to $15 a share, a remarkably wide spread.
- Benzinga
JPMorgan: Why GE's Earnings Beat Wasn't Really A Beat
General Electric Company (NYSE: GE ) shares are up 12.9% so far in the month of September on renewed optimism about the company’s long-term turnaround plan. However, one analyst thinks the optimism appears ...
- InvestorPlace
GE’s Asbestos Problem Is Terrible News for the Owners of GE Stock
The turnaround plan launched by General Electric's (NYSE:GE) CEO, Larry Culp, has been doing wonders for GE stock in 2019. But now, up 26.4% so far this year, including dividends, through September 16, GE stock could be badly hurt by some news from Canada. The Peterborough EffectSource: testing / Shutterstock.com InvestorPlace - Stock Market News, Stock Advice & Trading TipsGeneral Electric's had a plant in Peterborough, Canada, for 126 years, until GE permanently ceased operating in the city last December.Peterborough got the nickname "Electric City" as a result of its long association with GE, and one could say that it was Peterborough that helped the company become a dominant player in Canada. At the end of the day, both parties benefited from the long-time association. * 3 Biotech Stocks That Show The Good, The Bad and the Ugly Side of This Sector However, it was recently alleged that General Electric had sold leftover asbestos scrap from its Peterborough plant to its workers for as many as 35 years. That allegation ought to make the owners of GE stock quite nervous. Just as GE is turning a corner under Culp's leadership, a story comes out that could torpedo General Electric stock. Failure to Disclose"A joint Toronto Star/CBC investigation has found that for the past 15 years, GE has quietly paid to remove the hazardous material from local houses - after selling asbestos collected from its shop floor to employees between the 1940s and 1974," The Toronto Star reported on Sept. 17. A GE spokesperson said, "The health and safety of our employees and the public is a top priority for GE. Since 2003, we have removed insulation with asbestos containing material derived from the Peterborough facility. We will continue work with the community and homeowners if additional material is found."So far, GE has paid to remove asbestos from 24 homes, the newspaper stated. However, asbestos could be in hundreds of houses in the town, according to Peterborough Councilman Keith Riel. If that's true, GE may have to foot the bill for millions of dollars of remediation work. That's not a significant amount of money for GE stock. However, from an optics point of view, it just stinks. In fairness to GE, if the asbestos remains untouched, it's not a risk. The material only becomes a health issue if it's moved. "The moral and ethical thing for GE to do would be to put out a real public health notification to the people they sold that stuff to about this danger, and about how they should deal with it, " said Barry Castleman, a U.S.-based environmental consultant who has served as an expert witness about asbestos risks in about 24 American trials involving GE.Between 1975 and 2019, according to Peterborough Public Health and the Workplace Safety and Insurance Board of Ontario, the province in which Peterborough is located, there have been 685 disease claims by GE's workers. Just 43% of those claims have been approved for compensation, the board reported. A similar number of claims has been denied, and the rest are either pending or have been withdrawn, it added. The cancer rate from asbestos in Peterborough is 40% higher than in the rest of Ontario. indicating that GE's alleged asbestos sales have had a meaningful, negative impact on the town's health. In 2004, GE denied that it had ever sold asbestos to its employees. If its former employees hadn't found a 1956 GE newsletter that advertised that the company was selling 1,500 pounds of asbestos fluff each month, GE might not be in the situation in which it finds itself today. As one CBC reader quite rightly commented, "The entire town should sue the pants off GE. Lord knows they have enough skeletons in their closet. It's about time they paid for it." The Bottom Line on General Electric StockAlthough Culp has done a good job righting the ship, investors should not own GE stock if they're looking for a great investment. And after what I've read about how GE's handled its asbestos problem, I can't say I'd be very proud to admit I'm a shareholder of the company, either. Buy GE stock at your own peril.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 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post GEas Asbestos Problem Is Terrible News for the Owners of GE Stock appeared first on InvestorPlace.
- InvestorPlace
Why Rite Aid Stock Will Probably Underperform Alternatives
There's an intriguing case for Rite Aid (NYSE:RAD) stock at the moment. For a long time, bulls have been awaiting a turnaround that can boost Rite Aid stock, and a new CEO has finally come on board. Meanwhile, with the RAD stock price down over 95% from its early 2017 highs, the stock's valuation seems like it should be reasonable.Source: J. Michael Jones / Shutterstock.com And there is an intriguing, albeit high-risk, positive case for RAD stock at these levels.The current RAD stock price of $7.50 indicates a market cap of just under $400 million. The company's net debt (adjusted for the pending sale of two distribution centers) is over $3.2 billion. If the company's enterprise value of roughly $3.6 billion rises by just 10%, Rite Aid stock will almost double.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut I've been a longtime bear on RAD stock for reasons that go to the heart of the current bull case. The easy bull argument is that former CEO John Standley ran Rite Aid into the ground. Certainly, the revised deal with Walgreens (NASDAQ:WBA) was a massive disappointment. But the pressures on Rite Aid are the same pressures facing the rest of the industry.And so it's a bit too simplistic to believe that a new CEO can simply "fix" Rite Aid all that quickly amid the pressures on the sector. Meanwhile, the company's debt creates a major risk to Rite Aid stock going forward. Much like General Electric (NYSE:GE), a popular turnaround pick, new leadership can help RAD stock. But there are significant obstacles that add risk to the company's outlook. * 7 Momentum Stocks to Buy On the Dip Moreover, there are other ways, besides buying RAD stock, to bet on the turnaround of the sector. At the very least, those who are bullish on RAD stock should consider those options. Not Just Rite Aid's ProblemIt's important to put the performance of Rite Aid stock in the context of the pharmacy space. The entire industry is struggling right now. Fred's (NASDAQ:FRED), which was going to buy Rite Aid stores as part of the original Walgreens takeover, just filed for bankruptcy. Walgreens stock touched a five-year low last month. CVS Health (NYSE:CVS) bounced off its lowest levels in six years this spring.The RAD stock price has fallen further than other pharmacy equities. But that's because Rite Aid has more debt than its peers.In fact, since the beginning of 2018, Rite Aid stock has fallen 81%. But its enterprise value (its market cap plus the face value of its debt) is down only 22%. Over the same period, Walgreens' EV has dropped almost 20%, but its shares are down only 24%.It's clear that the entire sector is struggling with pressures. Reimbursement rates from insurance companies are falling. And sales of OTC products, perhaps due to competition from the likes of Amazon.com (NASDAQ:AMZN), remain weak.Those pressures, combined with higher fixed costs, have dragged down the sector's profits. Indeed, the operating profit of Walgreens' U.S. pharmacy business fell in the third quarter. Should Investors Buy CVS or Walgreens Instead of Rite Aid Stock?For RAD stock to finally rally, those industry pressures have to ease. But if that happens, investors can benefit by buying CVS or Walgreens instead. In terms of EV/EBITDA, Rite Aid stock is only modestly cheaper than CVS and Walgreens. As a result, investors would likely be better off buying one of the larger companies, which are big enough to muddle through if the environment doesn't improve.In an uber-bullish scenario, Rite Aid stock will no doubt outperform its peers (as it did after the financial crisis). That's because not many shares of RAD stock are available, so Rite Aid stock price can jump tremendously if its EBITDA increases and its free cash flow and net income move into the black from their current stagnation.But if the sector remains stable, Rite Aid stock will likely continue to underperform. And with $3 billion in debt due in 2023, and the company's net debt over six times its annual EBITDA, RAD may not be able to refinance.Rite Aid stock will outperform in a bullish scenario if the industry's pressures finally ease. In any other environment, Walgreens or CVS will likely do better. So investors who want to bet on the industry have to at least consider buying the shares of those larger operators instead. What Level Does the RAD Stock Price Need to Reach to Outperform Rite Aid's Bonds?There's another option to consider: Rite Aid's bonds. Like the RAD stock price, the prices of Rite Aid's bonds are at multi-year lows.The 6.125% bonds that mature in April 2023 have a current price of 79 and an annual yield to maturity of 13.7%. Longer-dated issues are potentially more attractive. The 7.7% February 2027 bonds are priced at 50, with a YTM of 21.2%.The 6.875% bonds that mature in 2028 have a similar price, with a yield to maturity of 18%.The bonds are less risky than Rite Aid stock, since secured bonds may have some value even if RAD goes bankrupt.And it's important to realize that RAD stock needs to climb substantially just to outperform those bonds. To top the April 2023 bonds, RAD stock price would need to reach $12. To beat the 2027 bonds, the RAD stock price would need to soar over 320%.The bond prices have an impact on Rite Aid stock because high demand for the bonds may cause demand for the equity to be low. And it's worth noting for near-term traders that the bond prices haven't moved lately, even as the RAD stock price has bounced 50% off its August lows. Consequently, the bonds are more attractive than they were a month ago.In the most bullish scenario, Rite Aid stock will outperform Rite Aid's debt. It will also outperform CVS, and Walgreens, and probably over 90% of the stocks in the market. The sheer size of the company's debt is why RAD stock has fallen so far - and why RAD stock can soar if it's finally able to lower its debt.But there's a long path to that bullish scenario, and some outside help is needed. And in anything less than a blue-sky outcome, investors likely will do better if they buy alternatives to Rite Aid stock.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Why Rite Aid Stock Will Probably Underperform Alternatives appeared first on InvestorPlace.
- Investor's Business Daily
GE, Engine Rivals Eye Contest To Extend This Cold War Icon's Life
General Electric, United Technologies and Rolls-Royce will compete to put new engines on the venerable Boeing B-52 bomber.
- Investopedia
8 Stocks With Biggest Upside Amid Oil Spikes on Middle East Chaos
Equity investors seeking to profit from rising oil prices amid escalating violence in the Middle East should focus on eight energy stocks and suppliers that are uniquely positioned to outperform. Stocks that could see the biggest sustained gains include energy producers Brigham Minerals Inc. (MNRL), Murphy Oil Corp. (MUR), Pioneer Natural Resources Co. (PXD), and EOG Resources Inc. (EOG). Also poised to benefit are energy industry suppliers such as valve and seal maker Flowserve Corp. (FLS), compressor maker Gardner Denver Holdings Inc. (GDI), valve maker Circor International Inc. (CIR), and General Electric Co. (GE), which owns 40% stake in Baker Hughes (BHGE).
