74.03 0.00 (0.00%)
After hours: 5:09PM EDT
|Bid||71.95 x 1400|
|Ask||73.91 x 900|
|Day's Range||73.21 - 74.45|
|52 Week Range||61.00 - 108.26|
|Beta (3Y Monthly)||1.68|
|PE Ratio (TTM)||43.32|
|Earnings Date||Oct 28, 2019 - Nov 1, 2019|
|Forward Dividend & Yield||0.48 (0.64%)|
|1y Target Est||88.00|
Rail equipment manufacturer Wabtec (NYSE: WAB) has decided to close its MotivePower business unit in Boise, Idaho, as the company seeks to consolidate its manufacturing operations following its February merger with GE Transportation. Wabtec will move operations from Boise to an existing facility in Erie, Pennsylvania. GE Transportation considers Erie as one of its "global performance optimization centers," where the company manages its locomotive fleet and maintenance resources, and provides a hotline for locomotive maintenance issues.
General Electric’s decision to reduce its stake in Baker Hughes a GE Company is another important step in the former’s deleveraging journey, argues Credit Suisse, although the firm isn’t ready to be bullish just yet.
General Electric's (GE) offering of Baker Hughes' shares to the public and Baker Hughes' decision to buy back own shares will likely raise roughly $3 billion. Funds will help in reducing debts.
BNSF Railway, the nation's largest railroad, is pushing forward with development of a battery-electric locomotive alongside Wabtec.
General Electric's (GE) offering of Baker Hughes' shares to the public and Baker Hughes' decision to buy back own shares comply with the restructuring plans announced in June 2018.
On Oct. 1, 2018, the General Electric (NYSE:GE) stock price closed at $11.62. In the 11-plus months since then, General Electric stock has struggled, falling by 25%.Source: Jonathan Weiss / Shutterstock.com Why is Oct. 1 meaningful? It's the day that Larry Culp, the celebrated former CEO of Danaher (NYSE:DHR), was named the new CEO of General Electric. Investors loved the move: the GE stock price closed 7% higher on the news. The hope was that Culp, who had presided over significant operating improvements at one industrial conglomerate, could work his magic at another.That hope seemed to fade quickly. Amid a plunging broad market, General Electric stock kept falling. In December, it briefly dipped below its financial crisis low of $6.66, touching a 25-year low in the process. A better broad market sparked an early 2019 rally, but accusations of accounting fraud last month sent shares tumbling.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell in Market-Cursed September For all the volatility and news, the irony is that not all that much seems to have changed in the last 11 months -- other than the GE stock price. Even the most bullish GE investor knew that Culp's turnaround efforts were going to take years to pay off. I've long been a GE bear, but even I have to admit: investors buying the turnaround last year should be absolutely loving General Electric stock below $9. A Busy Year for General Electric StockFrom one standpoint, GE stock looks very different now than it did last October. The company has aggressively sold assets to reduce its debt. Last month, GE Capital agreed to sell its aircraft leasing business for an estimated $4 billion to Apollo Global Management (NYSE:APO) and Athene Holding (NYSE:ATH). That follows a roughly $1 billion sale of energy investments to Apollo last year.In February, GE merged its transportation unit with Wabtec (NYSE:WAB), picking up cash in the process. It amended its agreements with Baker Hughes, a GE Company (NYSE:BHGE), and raised a few billion more in an offering of BHGE shares. Most notably, it agreed to sell its GE BioPharma business to Danaher for $21 billion.There have been concerns about the exposure of GE Aviation to the 737 MAX debacle at Boeing (NYSE:BA). As noted above, the company was accused of accounting fraud in GE Capital's long-term healthcare business. GE Power showed signs of life in the second quarter.Simply put, there has been a ton of news when it comes to General Electric stock. And yet, from another perspective, not all that much has changed. Has the Story Changed?As far as the asset sales and spin-offs go, it's not entirely clear that they created -- or destroyed -- all that much value for GE stock. General Electric obviously is giving up profit streams in exchange for near-term cash. That improves the balance sheet -- a key reason why General Electric bonds have outperformed General Electric stock - but doesn't necessarily change the total value of General Electric's business.Even the big sale to Danaher, which seemed like a logical step, wound up ending hopes for a spinoff of GE Healthcare. GE sold its Baker Hughes shares at $23; BHGE closed Friday at $23.53. The Alstom acquisition remains a weight around the neck of GE Power. The 737 MAX issues at Boeing could be good news - more spare parts sales for existing aircraft - while engine issues with that manufacturer's 777X add to the sense that Aviation truly is the hinge when it comes to GE stock.Even at GE Capital, it's not as if investors didn't know there were problems in the long-term healthcare business. The company took a $6 billion charge in January 2018 related to the unit. An analyst argued last October that reserves still weren't high enough.From a broad standpoint, this is a company still in year one of a multi-year turnaround. Power still needs to get fixed. Healthcare is a good business. Aviation likely is as well. And GE Capital seems like a black hole.None of that is news. Despite $30 billion-plus in asset sale proceeds, none of that really has changed. GE bulls bet a year ago that Culp could turn around a business that still had real value. Bears -- myself included -- argued that there simply wasn't that much underlying value anyhow. That argument still holds, and it still hasn't been resolved. A Lower GE Stock Price MattersIndeed, I argued in May of 2018 that, even in a breakup, GE stock probably was worth at most between $11 and $13. And so the price offered in October hardly seemed all that attractive.Truthfully, $9 doesn't quite, either. A ~30% decline in BHGE shares takes at least $1 off those targets. The news surrounding GE Capital, even putting the recent report aside, seems modestly worse than it appeared at that point. * 7 of the Worst IPO Stocks in 2019 But other investors can, and have, come to a different conclusion. There were investors happy to pay almost $12 for General Electric stock less than a year ago. Those who bought the stock then should see the trading of the past eleven months as an opportunity, not a problem.GE stock remains a bet that Culp can get value out of the "good" businesses -- Healthcare and Aviation -- while minimizing the damage from Capital and Power. That bet hasn't been proven right yet, of course. But bulls can at least point the fact that it hasn't been proven wrong yet, either.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 * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post If You Liked General Electric Stock Before, You Should Love It Now appeared first on InvestorPlace.
General Electric's (GE) financial services unit GE Capital's divestment of PK AirFinance will help it progress on its plan to divest assets worth $10 billion in 2019.
Alicia Hammersmith, general manager of Latin America & Texas Operations for Wabtec, discusses where she sees a place for rail in the future of transportation and more.
It was a wicked Wednesday as stocks tumbled amid mounting concerns that some major global economies, including the U.S., are flirting with recessions. Adding to the recession concerns, there was another instance of yield curve inversion today.For those not familiar with the vernacular, yield curve inversion is an instance of 10-year Treasury yields dipping below those on 2-year notes. This has happened several times this year. Over the course of history, such inversions have proven to be reliable harbingers of looming economic contraction.Speaking of contracting, that's exactly what Germany's economy, the Eurozone's largest, is doing which adds to risk-off pall cast over global equity markets.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 15 Growth Stocks to Buy for the Long Haul "Germany's economy shrank 0.1 percent from April through June and has been treading water for the last year, the government's official statistics agency said. Analysts at Deutsche Bank predicted that the economy will shrink during the current quarter as well, meeting the technical definition of a recession," reports The New York Times.Here in the U.S., the Nasdaq Composite plunged 3.02% while the S&P 500 sank nearly 3%. The Dow Jones Industrial Average slid 3.05%.In the category of "what a difference a day makes," yesterday I had the privilege of saying that all 30 Dow stocks traded higher. Today, I'm sad to report that in late trading, all 30 Dow components were in the red. Dow Winners In Short SupplyToday was one of those days when it's more about highlighting the best of the worst Dow stocks, not the biggest winners, because there weren't any winners to speak of. In late trading, just five Dow members were sporting losses of less than 1%.One of those names was Walmart (NYSE:WMT). The nation's largest retailer reports earnings tomorrow and in what could prove to be some much-needed good news, analysts are speculating that if Walmart beats, it could boost guidance."E-commerce sales performance in the U.S. will be closely watched. Telsey Advisory estimates a 37% year-over-year gain, which would match the first-quarter growth. Bank of America is looking for a 35% advance, and Tesley predicts a rise of at least 30%," according to Bloomberg. "In addition, analysts may have lingering questions around tariffs, even as the Trump administration said Tuesday it will delay until mid-December the 10% tariff on some Chinese products."I recently explored the long-term potential of Walmart's e-commerce efforts here. Consumer Staples Hold UpAs for the other members of today's least-bad group, a couple of those were consumer staples names, Coca-Cola (NYSE:KO) and Procter & Gamble (NYSE:PG). Given the risk-off tenor to the day, it wasn't surprising to see these stocks hold up, relatively speaking.However, there may another force at play. Historical data suggest that after yield curve inversion, the best-performing sectors are utilities and consumer staples. However, those historical anecdotes are not always all-encompassing. Just look at Walgreens (NASDAQ:WBA), shares of which slid 5.01% today. Dow Warning SignsCisco Systems (NASDAQ:CSCO) reports earnings after the bell today, but some investors departed the name in advance of that report as highlighted by the stock's 4% tumble today. Laboring around the $50-$51 area, this report is critical for Cisco's near-term fortunes. A move to the mid-$40s seems almost as likely as jump to the mid-$50s.There is also growing sentiment that McDonald's (NYSE:MCD), the Dow's best stock in August and one of the index's top performers this year, could be ready to decline, but that seems to be a technical bet, not a commentary on the stock's underlying fundamentals. DJIA Bottom LineI cannot confirm that a recession is imminent and it should be noted that the yield curve inversion, while reliable, is not 100% accurate. Nor am I glossing over the weakness in stocks, but historical data also confirm that the third quarter (August in particular) is usually unkind to equities.Perhaps the best strategy for the rest of this month and into September is to keep some cash on the sidelines and wait for more attractive opportunities to come available, particularly if the best defensive sectors can do is decline less than their high beta counterparts.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post Dow Jones Today: The Return of Unpleasantness appeared first on InvestorPlace.
Gordon Haskett analyst John Inch is widely known on Wall Street for his bearish views on General Electric stock. He thinks investors aren’t focused on what could go wrong at the conglomerate from here.
Wabtec Corporation (WAB) today announced the pricing of an underwritten secondary offering of 20,485,156 shares of Wabtec common stock at a public offering price of $72.50 by General Electric Company (“GE”), as the sole selling stockholder. The selling stockholder has granted the underwriters a 30-day option to purchase up to an additional 2,048,515 shares. Wabtec will not receive any proceeds from the sale of the shares by the selling stockholder in this offering.
Wabtec Corporation today announced the launch of an underwritten secondary offering of 20,485,156 shares of Wabtec common stock by General Electric Company , as the sole selling stockholder.
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.