|Bid||11.76 x 1000|
|Ask||0.00 x 43500|
|Day's Range||11.60 - 11.85|
|52 Week Range||7.65 - 12.24|
|Beta (5Y Monthly)||1.17|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jan 28, 2020|
|Forward Dividend & Yield||0.04 (0.35%)|
|Ex-Dividend Date||Dec 18, 2019|
|1y Target Est||11.27|
Amazon (AMZN) has faced scrutiny from politicians and labor leaders, who accuse the company of exploiting its dominant position unfairly. Investing in GE stock comes with considerable risks—especially the costs of the company’s pension plan and its long-term care insurance business.
General Electric is in a "budding turnaround" and should see minimal disruption from the Boeing 737 Max crisis, Morgan Stanley said.
Some near-term financial turbulence is in the cards, but there's light at the end of the tunnel for the industrial group.
Shares of General Electric Co. powered higher Thursday, after Morgan Stanley analyst Joshua Pokrzywinski turned bullish and raised his price target by nearly 30% less than a week before the company reports earnings, citing a “budding turnaround” in fundamentals and reduced risk regarding long-term liabilities.
The market is dropping today, so it’s no surprise to see utilities and real estate among the best performing sectors in the S&P 500. But why are industrial’s performing so well? We have an idea.
Morgan Stanley upgraded shares of General Electric Thursday. The upgrade comes just before fourth quarter earnings are due to be reported next week.
After a miserable few years for General Electric Company (NYSE: GE ) investors, the stock jumped 3% on Thursday after one analyst upgraded GE and said the company’s fundamental outlook is finally improving. ...
GE shares look set to halt a five-day skid linked to its Boeing 737 MAX exposure after analysts at Morgan Stanley boosted their rating and price target on the stock ahead of next week's fourth quarter earnings report.
One analyst called out “downside risks” for Boeing suppliers, including General Electric, Honeywell International, and Parker Hannifin.
GE (GE) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Shares of General Electric Co. sank 1.2% in morning trading, putting them on track for a sixth straight loss, and 10th loss in 11 days, amid concerns over the fallout from Boeing Co. pushing out expectations for the return of its 737 MAX planes. Analyst Andrew Obin said Boeing's announcement on Tuesday "increases the likelihood" that the 737 MAX production pause is extended through the first half of 2020, which would impact GE since GE makes the 737 MAX's engines. Obin reiterated his neutral rating on GE's stock and his $12 price target. "In our 4Q19 GE preview, we highlighted 737 MAX issues as a potential risk for GE in 2020," Obin wrote in a note to clients. Both Boeing and GE are slated to report results on Jan. 29, before the opening bell. The stock has run up 27.2% over the past three months, but has lost 4.9% during its six-day losing streak, while Boeing shares have shed 9.0% and the Dow Jones Industrial Average has gained 9.0%. A 6-day losing streak for GE's stock would be the longest since the 7-day stretch of losses ended on Dec. 5.
Boeing Co (NYSE: BA) shares are down 4% this week on reports the company has been telling customers its 737 Max likely won’t be cleared to fly until June or July, months later than it had previously expected. Obin said 737 Max suppliers are missing out on revenues while the grounding drags on. The good news for Boeing suppliers is that most of them have diversified businesses, with exposure to defense or other industrial customers.
Dozens of Massachusetts companies were among top-scoring employers for LGBTQ-inclusive workplace policies.
Investors are starting to believe in General Electric (NYSE:GE) again. GE stock has rallied some 54% from August lows. And there's a case that the rally can continue.Source: testing / Shutterstock.com After all, the bull case for General Electric stock rests on a turnaround engineered by chief executive officer Larry Culp. Culp transformed Danaher (NYSE:DHR) into a technology powerhouse; Danaher stock rose some 530% during his 14-year tenure. * 10 Cheap Stocks to Buy Under $10 Culp's appointment as General Electric's CEO on Oct. 1, 2018 was greeted with hopes that Culp could work similar magic: GE stock rose 7.1% on the news. But that enthusiasm has dimmed over time. Even with the rally over the past five months, General Electric shares are up less than 2% in the fifteen-plus months since Culp's hiring was announced.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe lack of upside so far suggests that more upside could be on the way if General Electric can drive the hoped-for turnaround. That's still a huge 'if,' however. Fourth quarter earnings on Jan. 29 will be huge in establishing how much progress GE is making -- and how much confidence investors can have in its future. Why Q4 Earnings Won't Change the CaseThe fourth quarter numbers themselves may not be all that important. Analyst estimates are soft, with the Street looking for earnings per share to climb a penny year-over-year on revenue down 23.5%.The top line pressure isn't necessarily the sign of a declining business. GE Aviation likely will see short-term pressure from the 737 MAX issues at key customer Boeing (NYSE:BA). And a reduction in the company's stake in Baker Hughes (NYSE:BKR) means that business no longer will be part of GE's consolidated financials.Q4 almost certainly isn't going to be impressive. Of course, that won't surprise anyone who's been paying attention. These two short-term factors will hit the reported numbers. And from a long-term standpoint, even Culp himself has emphasized more than once that the turnaround here will take time.The one number that will be closely watched is free cash flow. General Electric already has raised its outlook twice this year, and needs to hit its target. The gap between earnings and cash flow long has been a problem for GE stock. It was a key part of the (admittedly questionable) short seller report that sent shares tumbling briefly last year. And disappointing cash flow generation contributed to the two dividend cuts seen in recent years.Reaching the current forecast of roughly $2 billion in industrial cash flow (which excludes contributions from GE Capital) would be a step toward restoring GE's credibility. That aside, Q4 numbers, barring a huge surprise, seem highly unlikely to change sentiment toward General Electric.But that doesn't mean the fourth quarter release doesn't matter. It does. Why the Q4 Earnings Release Might Change the CaseThe focus won't be on the backward-looking numbers for a quarter affected by external factors. It's going to be on 2020 guidance.Again, General Electric has a long road ahead. Success is not guaranteed. As Dirk Hackbarth, Professor of Finance at the Boston University Questrom School of Business, told InvestorPlace:"Given its rebound, GE's future seems to be less of a "continued turnaround" and more one of a "strategic disinvestment" of its non-core pieces for the best prices it can get…Moreover, the proceeds from asset sales and spin-offs should be used to gradually de-lever GE to a level that is more in line with its profitability (e.g. return on assets) going forward."The bull case is that this will become a "leaner and meaner" General Electric. And so it would do wonders for GE stock if the company can show some progress this year. Right now, analysts aren't sure it will. Wall Street estimates for 2020 earnings per share currently have a wide range: the low estimate, according to Yahoo! Finance, is 49 cents, while the most bullish projection sits at 77 cents.That range isn't surprising given that analyst price targets too have a large split, as Hackbarth pointed out and Barron's noted last year. At the moment, the most bearish analyst (which I believe is Morgan Stanley's Stephen Tusa, long a GE skeptic) values GE stock at $5. The high target is $14.In that context, the 2020 outlook becomes exceedingly important. Full-year 2019 adjusted EPS should come in around 61 cents. If GE guides toward the low end of Street estimates, GE stock quickly looks overvalued. Investors are paying something close to 20x earnings -- and a higher multiple to free cash flow -- for a business still in decline.If GE supports more bullish expectations, however, this story gets much more interesting in a hurry. Guidance for, say, 70 cents would imply double-digit profit growth in 2020. Yet GE stock would be trading at roughly 17x that guidance. Rival Honeywell (NYSE:HON) trades at 21x 2020 consensus earnings with single-digit growth expected. A Big Stretch for GE StockAgain, next week's release won't prove that GE is destined for a turnaround -- or that it's doomed to further declines. But 2020 guidance, in particular, well may establish the direction of General Electric stock for several months, if not the rest of this year.It could go either way. GE stock could look very different depending on the trajectory established by 2020 results. Hackbarth forecast that the stock "more likely stabilizes in the current price range" this year. If 2020 performance in line with current expectations, that forecast is probably correct.But if GE can surprise to the upside, the story improves. GE has "many attractive parts," as Hackbarth put it. Aviation should benefit from long-term air travel demand. Healthcare has real potential, as I detailed last month. GE Power has substantial room for improvement. Those three units underpin the bull case here.That bull case, however, exists mostly on paper for now. It's up to Culp and GE to turn that theoretical potential into practical returns and cash flow. A confident outlook for 2020 can drive more confidence on that front, and thus more confidence in GE stock.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monthly Dividend Stocks to Buy to Pay the Bills * 7 Earnings Reports to Watch Next Week * 7 5G Stocks to Connect Your Portfolio To The post Why Next Week's Earnings Are Huge for General Electric appeared first on InvestorPlace.
Boeing is set to borrow another $10 billion, according to Reuters, as the company’s 737 MAX drama drags on. Boeing doesn’t appear to have a cash crunch just yet, so what is the $10 billion for?
(Bloomberg Opinion) -- If investors want a better world, they’ll have to pay for it.The world’s uber-elite converged on Davos, Switzerland, on Tuesday for the World Economic Forum’s annual meeting. The group of more than 2,000 is worth an estimated $500 billion and includes at least 119 billionaires. This year’s theme is “Stakeholders for a Cohesive and Sustainable World” and includes panels such as “Averting a Climate Apocalypse” and “Balancing Domestic and Global Inequality,” so you can count on plenty of chatter about the world’s most pressing problems.Aside from the obvious point that no one wants to hear about wealth inequality and climate change from a gaggle of billionaires whose carbon footprint dwarfs that of an ordinary person, the gathering comes amid growing suspicions that many of the corporate titans expected at Davos aren’t just casual observers of the world’s ills but actively perpetuate them in the pursuit of profits. Corporate executives seem to be coming to that realization themselves. The Business Roundtable, an association of U.S. CEOs, abandoned the principle of shareholder primacy last August, pledging instead to “lead their companies for the benefit of all stakeholders,” including customers, employees, suppliers and communities. The move is an implicit — if not explicit — admission that, as my Bloomberg Opinion colleague Joe Nocera put it last week, “Shareholder value has caused much harm in the three decades since it became the core value of American capitalism: diabetics who can’t afford insulin; students ripped off by for-profit universities; patients gouged by hospital chains; and so much else.”That singular focus on profits has also been an undeniable windfall for shareholders of U.S. companies. Consider that from 1871 to 1979, earnings per share for the S&P 500 Index grew 3.4% a year, according to numbers compiled by Yale professor Robert Shiller. In the late 1970s and early 1980s, a new generation of executives, including most famously General Electric Co.’s Jack Welch, made profit maximization their single-minded priority. Since 1980, earnings have grown 5.6% a year.Earnings are the invisible hand that drive stock returns. The S&P 500 returned 11.8% a year during the four decades from 1980 to 2019. Of that, nearly half came from the 5.6% of earnings growth. Dividends contributed 3% and change in valuation kicked in the remaining 3.2%, as measured by change in the 12-month trailing price-to-earnings ratio. Earnings have been even more of a workhorse in recent years as dividend yields have declined and — contrary to popular perception — investors have been reluctant to pay more for stocks. Of the 13.6% annual return from the S&P 500 from 2010 to 2019, a whopping 10.2% came from earnings growth and just 3.4% came from dividends and change in valuation.It’s hard to see how that pace of earnings growth — and the return from stocks by extension — is sustainable if companies decide that shareholders are no longer their only concern. Sure, some efforts to broaden the base of stakeholders may contribute to future growth, or at least not detract from it. Germany, for example, has a decades-old tradition of co-determination in which workers are represented on corporate boards, and German companies have generated higher earnings growth than their U.S. counterparts since Germany enacted co-determination in 1976.But the scale of the problems contemplated at Davos this week is likely to require more drastic intervention. Taking on inequality is likely to mean retraining millions of workers for higher-value jobs and paying them accordingly. Confronting climate change will require significant spending on research and in some cases abandoning whole lines of business. Those costs will be borne by shareholders big and small, from the bigwigs gathered at Davos to university endowments to pension funds to ordinary retirement savers. And not just in the U.S. The swell of protest and populist movements around the world is in part a reaction to the negative effects of shareholder primacy. Executives appear to be listening. Days after the Business Roundtable ditched shareholder primacy in the U.S., Business for Inclusive Growth, a coalition of 34 multinational companies, announced an initiative to tackle inequality with help from the Organization for Economic Cooperation and Development. There will be no shortage of observers calling the gathering at Davos an empty gesture this week, but the billionaires are right about one thing: Ignoring inequality and climate change is no longer an option. Now let’s see who’s willing to pay for it.To contact the author of this story: Nir Kaissar at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Nir Kaissar is a Bloomberg Opinion columnist covering the markets. He is the founder of Unison Advisors, an asset management firm. He has worked as a lawyer at Sullivan & Cromwell and a consultant at Ernst & Young. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
A total of 18.5 gigawatts of wind capacity is scheduled to come online by the end of 2020. Expiration of PTC at the end of 2020 seems to be the primary driver of this wind capacity addition.
Moody's Investors Service, ("Moody's") has today assigned a B1 corporate family rating (CFR) and B1-PD probability of default rating (PDR) to Aernnova Aerospace Corporation S.A. (Aernnova). Debt instruments will be issued by Aernnova Aerospace, S.A.U. and guaranteed by Aernnova.
Brazilian planemaker Embraer is in the advanced stages of studying the launch of a new turboprop aircraft to be developed through a venture it is planning with Boeing, subject to corporate approvals, a top executive said on Monday. The aircraft would be in the same size range or even larger than the 70-seat ATR-72, a Franco-Italian aircraft that currently dominates the market, Embraer Commercial Aviation Chief Executive John Slattery told Reuters. Embraer agreed in 2018 to fold its commercial aircraft activities into a venture to be controlled by Boeing.
DEEP DIVE The monetary forces that have helped feed the bull market are so strong that scores of stocks have risen significantly over the past year even as the companies themselves have been losing money.