|Bid||139.07 x 800|
|Ask||143.98 x 900|
|Day's Range||139.53 - 141.36|
|52 Week Range||94.59 - 145.50|
|Beta (3Y Monthly)||0.85|
|PE Ratio (TTM)||41.66|
|Earnings Date||Jul 18, 2019|
|Forward Dividend & Yield||0.68 (0.49%)|
|1y Target Est||145.62|
General Electric (NYSE:GE) shareholders have so far had a good year in 2019. Year-to-date, GE stock is up over 34%.Source: Shutterstock Most of the yearly gains came in the first two months of the year as investors seemed to believe that management would be able to create shareholder value in the long run.Between March and so far in July, GE stock has been trading in a range. Therefore investors are now wondering whether the bulls or the bears will have the upper hand in Q3.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGE stock is expected to report earnings on July 31. Let us take a look at what may be in store for General Electric stock as we approach the earnings season. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond GE's Q1 Earnings and Long-Term CatalystsOn April 30, General Electric reported Q1 2019 earnings, when the group beat earnings and revenue forecasts on orders up 9%. EPS came at 14 cents vs. expected 9 cents a share.At present, the company reports revenue in six business segments: Power, Renewable Energy, Aviation, Oil and Gas, Healthcare, and Capital.General Electric's Aviation, Oil & Gas, and Healthcare businesses delivered steady revenue and earnings growth.GE Aviation business, which is the company's largest segment by revenue, primarily builds and services aircraft engines. Earlier in June, Wall Street welcomed the news that the conglomerate signed lucrative contracts at the Paris Air Show.The segment took significant orders for LEAP engines as well as long-term service agreements (LTSAs). Wall Street pay close importance to service agreements as over close to half of the revenues come from from after-market services.Our readers may be interested to know that several analysts believe that the GE Aviation, which serves both commercial and military aircraft markets, may be worth about $100 billion when GE's own market cap is only 89 billion. Therefore, long-term investors may want to pay attention to the growth trajectory of the Aviation segment.The Oil & Gas Division, which is a cyclical business, has now returned to profitability.In Healthcare, GE has robust exposure to the hospital and lab equipment market. Several analysts see the possibility of an IPO for Healthcare.Within a few quarters, the company is aiming to have a much smaller GE Capital operation. The unit reduced its liabilities as it completed $1.1 billion in asset reductions in the quarter.GE's industrial free cash flow is a key metric for many analysts and shareholders. For the quarter, it showed a loss of $1.2 billion. Shareholders cheered General Electric in general, but especially the Power segment, burned less cash than feared. A Year in Progress for GE StockIn March, CEO Larry Culp called 2019 a "reset year" and urged patience during what has been portrayed as a multiyear turnaround. Following a rotation of CEOs, Culp took over from John Flannery in October. And has had a busy nine months so far.Under new leadership, General Electric has been taking several strategic steps to slim the group down to a few core units and raise cash by divesting from several businesses that no longer serve the group.These moves to clean up the balance sheet include the recent sales of the biopharma segment of the company's healthcare operation to Danaher (NYSE:DHR), a smaller industrial player, for $21 billion and the merger of its transportation business with Wabtec (NYSE:WAB).As a side note, before joining GE, Culp had successfully headed and turned around Danaher, so industry watchers were generally supportive of the sale of the biopharma operation to the group.It has recently been reported that management would also like to sell GE Ventures, a diverse collection of over 100 startup companies.Long-term GE investors know that its Power division has had significant problems an sharp revenue declines in recent years. GE's core power product is the gas turbine.Wall Street is expecting the company to break up the Power segment in the coming quarters, a move that may benefit the GE share price.In other words through asset sales and spinoffs, GE is aiming to generate enough cash to reduce its $121 billion debt load and become more manageable.Last year, Culp took over a company with significant debt and unfunded pension liabilities and investors are understandably still nervous.Yet, overall, Wall Street approves the directional shift which seems to put the company on a stronger ground. And investors are reacting positively to these strategic moves that Culp has been taking.Turnarounds in industrial giants such as General Electric take a long time and never occur in a straight path. In the next earnings report, GE investors are likely to pay attention to improvements in individual segment margins and free cash flow trends. The GE Stock Price NowMany long-term shareholders know that General Electric stock price is a shadow of its former self. Let us go a bit back in history.In August 2000, GE stock hit an all-time high of $60.75. In October 2007, it was hovering around $40. By March 2009, at the heights of the great recession, General Electric's risky balance had sheet pushed the shares down to $5.73.In 2016, GE stock saw a decade-high of $33. But troubles for the General Electric share price began once again with 2017. Losses in the GE Capital unit and plummeting sales and profitability in General Electric's Power business put pressure on the stock.The market decline of 2018 pushed the shares once again to the single digits and in December of last year, the price saw a decade-low of $6.66.As of this writing, GE stock is hovering around $10.2. So Should Long-Term Investors Buy GE Stock?After years of continuous price volatility and decline, it is still proving hard for GE to regain investor trust for the long term.If you follow technical analysis, the long-term GE stock chart has been improving. In other words, bears are not in control of the stock price at this point as the worst has likely already been priced into General Electric stock.From a longer-term technical analysis perspective, I'd expect the stock to move up another 15-20% from the current levels within a year. Shorter-term, the stock will possibly continue to trade in a range, hovering around $10.I am also encouraged by the fact that GE stock's current price-to-sales (P/S) ratio is over 0.73x. Companies generate revenue from the sale of goods and services. Analysts prefer a low P/S ratio, ideally below 1. However, a P/S number between 1 and 2 is more common. To put the metric into perspective, S&P 500's average price-to-sales ratio is 2.1x.Another way to analyze the P/S ratio is to compare companies in similar industries or segments. Our readers may be interested to know that the P/S ratio for Boeing (NYSE:BA) is 2x. For Honeywell (NYSE:HON) stock, the P/S ratio stands at 3.2x. And for 3M (NYSE:MMM) the P/S is almost 4x.Investors who do not yet have a position may want to wait until GE's earnings report in late July to have a better view on the developments within individual segments. Analysts will pay special attention to the sales figures in different units as well as the level of free cash flow.Those investors who already own GE shares, may either consider taking some money off the table or hedging their positions. As for hedging strategies, covered calls or put spreads with Aug. 16 expiry could be appropriate as straight put purchases are likely to be expensive due to heightened volatility. Then, you may reevaluate your long position after General Electric reports earnings. The Bottom Line on GE StockOver the past few months, the narrative for General Electric stock has changed for the better and GE is not making regular negative headlines any more.I believe that many long-term investors are ready to give GE management, which has started dealing with the pressing issues, the benefit of the doubt. Therefore, I'd see any dip in GE stock price an opportunity to go long.The author has GE covered calls (July 12 expiry). More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post GE Stock Is Making the Right Moves to Build Investor Confidence appeared first on InvestorPlace.
Danaher (DHR) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
For General Electric (NYSE:GE), it has been a dreadful few years. GE stock, which reliably traded around $30 in 2016, sells for just a third of that value today. The company had to slash the dividend to nearly zero, and even that hasn't totally resolved concerns about the company's balance sheet and fiscal health going forward.Source: Shutterstock If you're a trader, you might be pleased with GE stock. It is up from $7 earlier this year to $10 now, which is a big move off the lows. But don't forget that a year ago, GE stock price was still $14. The move back to $10 has hardly repaired the colossal damage that shareholders have suffered over the past three years. With the stock market now at fresh all-time highs, the stock has continued to disappoint by comparison.GE's dismal stock performance is in the past, however. Is the recent move up from the low the start of a new recovery phase for General Electric? Or is this simply another little bounce before General Electric stock resumes its slump?InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Company In TransitionNine months ago, GE got a new star CEO, Larry Culp. This wasn't GE's first attempt at fixing the executive suite. In 2017, General Electric elevated John Flannery to the top post to try to reverse the firm's sliding fortunes. But Flannery barely lasted a year. The company missed guidance quarter after quarter under his watch. The GE Board wasted no time in bringing yet another new chief executive. And in Larry Culp, it looks like they got a most capable leader.Culp previously served as CEO of Danaher (NYSE:DHR) from 2001 to 2014. During his time there, Danaher stock produced a total return of almost 500% for shareholders. Culp is the first outsider CEO to take the reins in GE's history and shows the company's willingness to do a total reboot to try to get back on track. For a company of GE's pedigree, it's quite a statement that they were willing to hire from outside the firm.Culp has shown plenty of willingness to make big moves in his young tenure. Already, General Electric spun off and then merged its transportation business, which has become Wabtec (NYSE:WAB). Culp made a huge sale in healthcare, unloading the biopharma operations for a huge payday. GE raised a few billion from selling part of its stake in GE Baker Hughes (NYSE:BHGE). And the list goes on.But there's plenty more left to do. As the GE stock price shows, the market isn't convinced that Culp has found the right formula to revive General Electric just yet. Let's take a deep look at GE stock's pluses and minuses as we are almost a year into Culp's turnaround efforts with the industrial giant. A Good Deal With DanaherIf General Electric is to return to its past glory, the first order of business is staying in business. The company needs to make it through this horrid stretch without selling or mortgaging away all its best assets. However, given the company's difficult financial situation, investors have rightly worried about what all GE will have to sell to make it through this down period. * 10 Best ETFs for 2019: The Race for 1 Intensifies On that note, General Electric should be commended for its recent biopharma sale. It managed to unload its biopharma division to Danaher for $21 billion. That appeared to be fully valued. Danaher shareholders weren't particularly ecstatic when they announced the deal, indicating that GE got a solid price. Don't forget that Culp used to be the head executive at Danaher, which likely gave him some flexibility while negotiating the deal.The $21 billion is in and of itself great news, giving the company the funds to tackle more than a third of its net industrial debt position. And, of arguably equal importance, by selling biopharma, it allowed GE to stay in healthcare. Previously, analysts had worried that GE would have to exit healthcare altogether in order to raise enough funds to right the balance sheet. GECAS: A Big Test Going ForwardOne of General Electric's most valuable assets is its jet engine leasing business. Returns in aircraft and engine leasing have historically been very attractive.Airlines tend to be hard-up for cash. And given the history of vast numbers of bankruptcies in the airline industry, banks tend to be cautious in their lending to airlines. Thus, for airlines to get capital at reasonable prices, they often have to engage with non-traditional lenders.GE is ideally suited for this. As the manufacturer of jet engines, it knows its industry about as well as anyone. It directly influences supply in the market, and has excellent information about the demand picture as well. Also, in the event of an airline default or bankruptcy, GE is ideally positioned to get its engines back into use at another airline. By contrast, a bank would be clueless about how to monetize an asset like that.Put all that together, and GE has built a fantastic business in engine leasing. However, many analysts have suggested that General Electric will have to sell it to raise funds. Also, leasing is a rather capital intensive business; it'd likely do a lot to boost GE's credit rating if they got out of the market.Thus, leasing is an interesting test of management. Larry Culp has said repeatedly that the leasing business is not for sale. If GE can make it through the cash crunch without selling leasing, it'd be a sign of strength. If they end up selling it over Culp's protestations, however, it'd be somber news for General Electric stock. Negative Free Cash FlowIn March, GE stunned investors when it warned that the company's free cash flow would turn negative for 2019. Even in a year as dour as 2018, GE still managed to bring in more than $4 billion of FCF. So going negative altogether was truly a huge surprise.With more reflection, however, it makes sense. The company's negative free cash flow is a culmination of many issues. These include the lost revenue related to Boeing's (NYSE:BA) plane crashes, the plunge in renewable power demand and the fall of GE Power's prospects, among other matters.GE expects its cash flow picture to look better in 2020 and especially in 2021 and beyond. But that may not be soon enough to salvage things for GE stock. As discussed below, GE is starting to run into issues in the credit market. The company's balance sheet has been questioned, ratings agencies have downgraded the stock, and funding costs are going up. Running negative free cash flow is a very bad look for General Electric as it tries to reassure its investors and creditors.However, the cash flow crunch may not be as bad as people fear. At least one analyst thinks so. Nicholas Heymann of William Blair came out with an analyst note this week that made the case for GE stock. Among Heymann's points, he expects GE's cash flow to surprise to the upside this quarter. Overall, Heymann sees the GE stock price as being worth between $14 and $16 per share. That'd be roughly 50% upside from today's prices. GE's Fiscal DifficultiesIn October 2018, Moody's downgraded GE debt by two notches to Baa1 from A2. That was a big blow for both the firm's reputation and access to capital going forward. And that downgrade came less than a month after S&P's own ratings action against GE.The next month, GE reacted by abandoning its use of the commercial paper market. Large companies with good credit can borrow short-term in commercial paper at attractive rates to fund temporary liquidity needs. When GE stopped using commercial paper, it made the market reassess the company's overall credit-worthiness.Since that point, the yields on GE Capital's various longer-term bonds have moved higher. That's in sharp contrast to the overall fall in interest rate yields as the Fed sets up to cut interest rates. This suggests that GE's credit worthiness continues to decline, even after the blockbuster sale of biopharma to Danaher.It also puts GE in a difficult place going forward with its capital division. A finance operation can't generate good sound profits if it doesn't have consistent reliable access to cheap funds. If GE can't reassure the market that it is a money good creditor, the capital division's value will be sharply impaired. The Shrinking GE PowerOne of the key building blocks of the new leaner General Electric was supposed to be GE Power. But these efforts have quickly run into trouble. That's because the demand from utilities for GE's products has slumped far more than folks had expected.Utility companies are now looking for just 25-30 gigawatts of capacity. That's way down from estimates of nearly 50 gigawatts as recently as 2016. The global economic slowdown and trade war worries have done little to help reverse this slump in sentiment. Plus, it turns out, electricity use simply isn't growing as fast as models had predicted years ago. More efficient appliances combined with slowing population growth has really cut into future electricity demand.As a result, GE has taken aggressive action to shrink GE Power down to size. It reduced the division's work force by 10,000 employees. In a related move, it has cut almost $1 billion a year in costs from GE Power. This will all help make GE Power more profitable -- or at least stem the losses from shrinking end demand. The division remains stuck with lawsuits, cost overruns and other headaches from previous management regimes, however. If GE stock is going to rebound sharply, GE Power has to perform better in the future. GE Power Faces An Explosive IssueFacing these difficulties, GE Power ran into a poorly timed public relations issue. After a large number of explosions, Brazil's grid operator suggested that GE's equipment was defective. Reuters reported that:"There are close to 700 pieces of that equipment in Brazil's grid, each costing up to 100,000 reais ($26,000). Power transmission companies have already launched tenders to buy replacement transformers while they discuss the costs and a schedule for the changes with GE and regulators."GE continues to claim that its equipment is not at fault. However, Brazil doesn't seem convinced of GE's innocence in the matter. China's State Grid corporation has expanded significantly in Brazil in recent years and could take a share of GE's business in that large country. Notably, Brazil is part of Mercosur -- a South American economic union -- that just reached a historic free trade agreement with the EU. This could bring in yet more competition for GE in that market. In any case, with GE Power already struggling, this Brazilian issue comes at a most unfortunate time. Don't Expect A Healthy Dividend Anytime SoonLast year, GE slashed its dividend to a mere penny per quarter. That move came on top of another previous dividend cut. You might be asking, why didn't GE get rid of the dividend altogether, as so many struggling companies do? For one thing, General Electric used to be a storied blue chip dividend payer. The company was viewed as a stable secure source of income for retirees and other risk averse folks. General Electric has a history of paying dividends continuously for decades, and by keeping a payment -- even a meager one -- it can keep at least some semblance of its past history going.Also, importantly, many mutual funds and exchange-traded funds have strict rules about what sorts of stocks they own. Many growth and income funds, for example, can't buy stocks that have no dividend. Many income-focused ETFs would also have to dump GE stock if the company eliminates the dividend entirely. So, in a weird way, even a tiny dividend is useful for keeping GE stock from slumping even farther.That said, don't look for GE to bring back a more robust dividend within the next few years. It is largely keeping the dividend for mechanical and sentimental reasons. It's not sticking with the dividend because it's a good use of capital. At this point, GE needs all the money it can muster to survive this horrid stretch of business that it is suffering through. Paying out a fatter dividend to shareholders would be irresponsible given the state of GE's balance sheet. If you want an industrial stock that provides a solid and steady stream of income, the 2019 version of General Electric stock is a bad choice. Forget Sunk Costs: Would You Buy GE Stock Now?In investing, it's always useful to think about what you'd do if you had no position already. If you were a neutral observer of General Electric, and had the option of buying it or rival industrial companies, what would you do? Most likely, you wouldn't buy General Electric stock right now.So if you hold GE, you should really pause and consider that. Do you believe GE stock is fundamentally a solid choice for your portfolio today? Or are you hoping that it recovers to its past glories, and that you are able to sell it for a profit? * 7 of The Best Schwab ETFs for Low Fees The stock market doesn't care what price we buy an investment at -- there's nothing magical about the cost basis for a position. Holding stocks simply to try to get back to break-even is a classic investor error that leads to massive opportunity cost and sometimes results in holding stocks all the way until they go bust.You get no extra reward for holding a losing stock for many years before it (hopefully) turns around. In the meantime, you suffer a large opportunity cost. With the stock market zooming higher, there are so many better investments that the average person could own instead of General Electric stock. Bottom Line on General Electric StockIf you believe in General Electric's turnaround story, $10 might still be a compelling price to buy at. It's not a fire sale, like it was at $7, but there's still a clear path to $15 or higher if management is able to execute and the economy remains strong. But I don't see the risk/reward for GE stock being particularly compelling at this price. If you're on the sidelines, there's no reason to get involved here.And if you do own GE stock, you should think about whether you are holding it because it has strong prospects, or if you own it hoping to recover losses or some other emotional reason. The General Electric that exists today is far different from the firm that existed in 2007, let alone back in Jack Welch's glory days.While Immelt, Flannery and Culp haven't totally broken up the old GE, the firm has lost so many pieces that had formerly made it great. GE's financials and banking business in particular was a huge boost to earnings. That's largely gone now, with small pieces left here and there. Even if General Electric recovers, it's unlikely to regain its former glory.As a much more pure-play industrial firm, there's simply not the sort of upside that you had when GE was an industry-spanning conglomerate. And with this economic recovery already so well-advanced in years, it's worth asking: What will happen when industrial-heavy GE stock faces the next recession? For now, General Electric doesn't offer enough reward to justify the risk.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post Can Larry Culp Really Save General Electric Stock? appeared first on InvestorPlace.
Danaher Corp NYSE:DHRView full report here! Summary * Perception of the company's creditworthiness is negative * ETFs holding this stock are seeing positive inflows but are weakening * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for DHR with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting DHR. Money flowETF/Index ownership | NegativeETF activity is negative and may be weakening. The net inflows of $4.12 billion over the last one-month into ETFs that hold DHR are among the lowest of the last year and appear to be slowing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | NegativeThe current level displays a negative indicator. DHR credit default swap spreads are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Another strong year and a transformational acquisition are in progress for one of the most admired industrial companies in the U.S.
Danaher (DHR) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
In breaking down General Electric (NYSE:GE) into its most profitable segments, CEO Larry Culp has lost the scale needed to retire its debt. Since becoming CEO last October, Culp has turned around operations. Unfortunately for investors, there's been no turnaround in GE stock, which is down almost 9% under the new CEO.Source: Shutterstock Regarding those operations, in GE's first quarter report the only unit not showing a profit was renewable energy, where a new conservative government in Ontario canceled hundreds of wind power contracts.The problem is that a company running at $110 billion in annual revenue is going to have a hard time ever retiring $105 billion of borrowings, and almost $74 billion more in "other liabilities" -- mainly pensions and long-term care costs.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOnce upon a time, GE Capital could have dealt with these issues. But previous CEO Jeff Immelt sold off assets to cover up what he was doing elsewhere. Now the numbers don't add up. Victim of Clean EnergyImmelt made two contradictory bets.He bet on renewable energy, including efficiency, and he bet on fossil fuel energy, in the form of oilfield services and turbines. He doubled down on that bet by buying Alstom in 2015, calling it the "best deal in a century" because, at the time, the French turbine maker had a $50 billion order backlog. * The 7 Top Small-Cap Stocks Of 2019 Then efficiency cut demand, the costs of wind and solar energy plummeted, and the backlog for turbines running off natural gas disappeared. But GE is still in the fossil fuels business, a business even JPMorgan Chase (NYSE:JPM) analyst Stephen Tusa says is in "secular decline."Renewable energy is a capital goods business. Once a turbine or solar panel is in place and paid for, further energy from it is practically free. The only revenue coming from it is service revenue or replacement, at a much lower cost (because technology creates efficiency). Fossil fuels, on the other hand, are burned and must be continually replaced. The business models are as different as the proverbial night and day. Impossible DreamsGE stock is somehow up 46% so far in 2019, closing trading on July 2 at $10.62 per share, giving it a market cap of $92.6 billion. That may be because GE publicists have been spinning Culp as a heroic genius with an "inner Jack Welch," referring to the man who built GE as a finance and entertainment powerhouse in the 1990s. * 7 F-Rated Stocks to Sell for Summer But even Jack Welch couldn't spin GE's straw into gold. A deal to sell GE's biopharma unit to Danaher (NYSE:DHR) for $21.4 billion -- where Culp was once CEO -- buys time, but that's selling the family silver to keep up maintenance on a mansion that's become a money pit. Worse, that deal is now threatened by the trade war. If Danaher tries to negotiate a discount, it's in a strong position. But what would that do to investor sentiment in GE?Culp has ended a long-standing patent fight with Vestas, its wind turbine rival, and is closing a natural gas plant in California, which will become a battery storage warehouse. JPM's Tusa worries that the end of renewable energy tax credits next year will now cause the wind power unit to decline. Bottom Line on GE StockJust when Culp -- and GE stock investors -- need his successes to keep succeeding and his losers to turn around, the opposite is happening. The Boeing (NYSE:BA) 737-Max mess is hitting results at GE Aviation. The unit may now be worth as little as $30 billion, Tusa thinks. Brazil is taking GE transformers off-line because they have a habit of blowing up.Culp is beginning to remind me of a loyal henchman given command of the evil genius' lair after James Bond has set the auto-destruct. Saving GE may be a hopeless task.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in JPM. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks to Buy and Hold Forever * 10 Small-Cap Stocks That Look Like Bargains * 10 Names That Are Screaming Stocks to Buy The post General Electric Stock Investors Lament The Seemingly Never-Ending Debt appeared first on InvestorPlace.
General Electric (GE) is likely to gain from restructuring efforts, organic growth opportunities in some segments, reduction of debt levels and expansion in emerging markets.
Danaher (DHR) plans to create a separate dental company Envista, which will be listed on the New York Stock Exchange, and is likely to employ 12,000 people globally.
WASHINGTON, June 27, 2019 /PRNewswire/ -- Danaher Corporation (DHR) ("Danaher") today announced that Envista Holdings Corporation ("Envista" or the "Company") will be the name of the separate company Danaher intends to create and take public via an initial public offering in the second half of 2019. Envista will be comprised of three operating companies within Danaher's Dental segment: Nobel Biocare Systems, KaVo Kerr, and Ormco.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Danaher Corporation 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.
What a difference strong leadership can make for a company, as shown by General Electric (NYSE:GE) stock. Larry Culp, who came on board as CEO in October 2018, had the unenviable task of leading the company's turnaround.But his moves has been decisive and strategic. More importantly, he has brought realism to the company. Then again, Culp demonstrated those abilities while he was the CEO of Danaher (NYSE:DHR), which generated standout results for shareholders during his tenure. * 6 Stocks Ready to Bounce on a Trade Deal Source: Shutterstock GE stock has done great during Culp's brief time with the company. Since December, the shares have gained 55%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut turnarounds often take a long time. And that will certainly be the case with GE's efforts. There is still lots of heavy lifting to be done, and GE is facing some tough headwinds. In other words, investors should be cautious, as the easy gains of GE stock may be over.In fact, there are already signs of that. Keep in mind that GE stock has been in a persistent range of $9 to $11 since February.So what issues is GE facing? Let's take a look at three risks of investing in General Electric stock. Risk Facing GE Stock: GE's FinancialsOne of the biggest changes at GE has been Culp's transparency with Wall Street. To this end, he says that 2019 will be a "reset" year. But the fact is that GE has a tremendous amount of debt and contingent liabilities. Cumulatively, GE owes a staggering $107.5 billion. So for quite some time, Culp will be mostly focused on finding ways to generate cash. To help accomplish that goal, he's already agreed to sell GE's biopharma business to Danaher and divest its locomotive segment, which was acquired by WabTec (NYSE:WAB).But given that GE is cyclical and that the global economy appears to be slowing, GE could easily report negative earnings surprises in the months ahead. Risk Facing GE Stock: GE's Aviation BusinessThe aviation business has been positive for General Electric stock for some time. As seen at this week's Paris Air Show, the unit is snagging plenty of orders. Note that it recently signed its biggest deal ever, agreeing to sell $20 billion of engines to an India-based airline.But unfortunately, the aviation business is still facing headwinds. For example, Boeing's (NYSE:BA) 777X widebody jet will not meet its deadline because of a problem caused by GE's engines. The problem is likely temporary, but it's still worrisome and will cause a meaningful amount of GE's revenue to be delayed.It's far from clear what will happen with the 737 MAX, which has been grounded because of two crashes. But again, this means loss of momentum for GE's engine business. Risk Facing GE Stock: GE's Power BusinessThe Power Business, which accounts for roughly 20% of GE's overall revenues, continues to be a problem for the company. The competitive environment of the sector is intense, demand for Power's products has been sluggish for some time, and it's been accused of being less than 100% forthright about its results. There are also signs that Chinese companies may make inroads in this industry.Here's what JPMorgan analyst Stephen Tusa has said about the situation: "We believe a full accounting of the situation with a closer look at the data, even a rudimentary review, supports our view that GE is indeed losing market share…"Keep in mind that Tusa was able to predict the implosion of GE stock. Consider that he currently has a $5 price target on the shares, implying a drop of more than 50% from their current levels.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 * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Blue-Chip Stocks to Buy for a Noisy Market * 5 Strong Buy Biotech Stocks for the Second Half * 6 Stocks Ready to Bounce on a Trade Deal Compare Brokers The post 3 Reasons GE Stock May Stall Out appeared first on InvestorPlace.
WASHINGTON, June 18, 2019 /PRNewswire/ -- Danaher Corporation (DHR) announced today that it will webcast its quarterly earnings conference call for the second quarter 2019 on Thursday, July 18, 2019 beginning at 8:00 a.m. ET and lasting approximately 1 hour. The call and an accompanying slide presentation will be webcast on the "Investors" section of Danaher's website, www.danaher.com, under the subheading "Events & Presentations." A replay of the webcast will be available shortly after the conclusion of the presentation and will remain available until the next quarterly earnings call. You can access the conference call by dialing 866-503-8675 within the U.S. or +1 786-815-8792 outside the U.S. a few minutes before 8:00 a.m. ET and notifying the operator that you are dialing in for Danaher's earnings conference call (access code 8699843).
Examining Danaher Corporation's (NYSE:DHR) past track record of performance is an insightful exercise for investors...
The Zacks Analyst Blog Highlights: Berkshire Hathaway, salesforce, Danaher, Halliburton and American Airlines
Danaher (DHR) stands to gain from solid product portfolio, acquisitive nature and shareholder-friendly policy. High costs and debts as well as forex woes remain concerning.
The life sciences stocks have been rallying lately, and while some of that strength has stemmed from market rotations, Jim Cramer says most of the move is coming from solid execution. Danaher, is a well-run company that has an excellent track record of making smart acquisitions to turn good businesses into great ones according to Cramer. In the daily bar chart of DHR, below, we can see a sideways consolidation pattern from last June until early February.
With all due respect to the analyst community, please stop handicapping General Electric (NYSE:GE) as if it's possible to know where the company will be a year from now. Likewise to investors, be wary of treating GE stock as if it reasonably compares to peers such as Honeywell International (NYSE:HON) or Danaher (NYSE:DHR).Source: Shutterstock GE is, more than anything else right now, an enigma… an idea. Choosing not to acknowledge it as such could prove frustrating.That's not intended as an insult to parties on either side of the capital-markets table, to be clear. The aforementioned pitfalls are easy to stumble into; I've stumbled into both traps more than once myself.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 High-Quality Cheap Stocks to Buy With $10 But, as a guy who's been in the investing business for 20 years now (with the gray and thinning hair to prove it) I can say I've seen, heard, and done it all, most of it twice.That includes the current General Electric story and all of its nuances; same story, different name. And, the fact of the matter is, nobody has a clue General Electric is really going. They're all guessing. We're all guessing.There is one thing I am confident of though. That is, if GE stock can clear one key technical hurdle, all that rhetoric is going to turn bullish in a hurry, driving what could be a decent bullish swing trade that may well flag the long-awaited, bigger turnaround. A Closer Look at GEIt's not a reality too many in the financial media and investment-advice business care to concede, but sometimes, our best guesses still aren't all that good.It's a rarity, to be fair. People paid to pontificate tend to have a rather firm grip on things that are taking shape with the economy, the market and with individual companies.This isn't one of those times though. General Electric has thrown a lot of people for a loop.But, at least the professionals at this dance have to chime in with something on the company.Reality: The sale of General Electric's assets like its locomotive arm to WabTec (NYSE:WAB) and the rumored liquidation of its aviation finance arm are seemingly steps in the right direction. GE needs cash to shore up liquidity problems, and selling assets is the quickest way to raise liability-free cash. Bear in mind, however, the company is selling revenue-bearing and in many cases profit-driving assets.Some say there's more upside to paring itself down, but others are less convinced divestitures are the right move given the company's cash-flow challenges.Its Power arm is in trouble too. Let's not pretend like that's not at least partially the result of persistently tepid oil and gas prices though, admittedly underscored by a lack of product development.The former remains entirely out of the company's control, no matter how well General Electric regroups its power business from the inside.The biggest X factor of all though is the unknowable. Right now, there are simply an overwhelming number of unknowables muddling up a clear view of the company's fiscal strength.Perhaps more so than any other outfit seen in the modern market era, General Electric is a moving target… multiple moving targets, in fact. Nobody really knows what lies ahead, even if their thesis seem rock-solid and well-polished. Looking Ahead for GE StockThat's not to suggest GE stock has to be avoided. Indeed, General Electric has the potential to be very rewarding for the right kind of trader.The key is simply understanding that the chart of GE stock right now is driving opinions of the stock as much as it's being driven by them.To that end, we're all lucky in the sense that investors have collectively, unconsciously drawn their line in the sand. It's $10.48, where GE stock has peaked a couple of times since March.It's working on another test of that technical ceiling right now, but is starting that effort with the benefit of its first streak of higher lows since 2016.Notice GE shares have also crossed back above the 200-day moving average line, plotted in white, and this time seem a little more willing to stay here.Zooming out to the weekly chart we can see this week's strength presses against the line that's capped all the key highs going back to May of last year.Clearly there's more work to be done. But, if General Electric shares can move above its recent ceilings, it becomes much easier to justify buying.It also becomes much easier to justify upgrades; don't think for a minute analysts' handling of the turnaround story aren't being scrutinized more than they normally might for other names.Just wait and watch. The Final WordI'm all too aware that penning these kinds of ideas is maddening to a whole slew of people… professionals as well as amateurs. The notion that a chart can lead to opinion changes rather than the other way around is often dismissed. And, there was a point in time, years ago, when such an idea should have been dismissed.The market's changed though. Fundamentals don't matter nearly as much as stories do, assuming that fundamentals mean anything anymore. In the case of General Electric right now, they may not.Whatever the case, don't kid yourself about what GE stock is here. You're not making a bet on the company by buying it now, or after any cross above $10.48.You're making a bet on how the masses are going to feel about GE at some point in the foreseeable future. Indirectly, you're betting on how analysts are going to change their opinions when they absolutely have to.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post The Problem Is, GE Stock Is Just Unknowable Right Now appeared first on InvestorPlace.