9.42 0.00 (0.00%)
After hours: 7:54PM EDT
|Bid||9.42 x 43500|
|Ask||9.42 x 21500|
|Day's Range||9.34 - 9.50|
|52 Week Range||6.40 - 13.25|
|Beta (3Y Monthly)||1.13|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 30, 2019|
|Forward Dividend & Yield||0.04 (0.43%)|
|1y Target Est||10.76|
(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 email@example.comTo contact the editors responsible for this story: Brendan Case at firstname.lastname@example.org, Tony RobinsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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.
"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.
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 ...
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 email@example.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.
General Electric's (GE) latest microscope DeltaVision OMX Flex is capable of capturing cell division details with high precision and contrast.
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.
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.
Analysts remain polarized about the prospects for General Electric. Wall Street target prices range from $5 to $15 a share, a remarkably wide spread.
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 ...
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 StockÂ appeared first on InvestorPlace.
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.
General Electric, United Technologies and Rolls-Royce will compete to put new engines on the venerable Boeing B-52 bomber.
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).
When it comes to investing, everything matters. The fundamentals matter. The stock needs to be undervalued or fairly valued relative to its long-term growth prospects. The optics matter. There needs to be a reason why investors will want to buy the stock for the foreseeable future. And, yes, the technicals matter. The chart needs to support the bull thesis.In this gallery, we will focus on the last of those three characteristics. Specifically, we will be looking at five stocks that have great charts.But, we won't neglect the other two characteristics, either. In other words, we are going to look at five stocks that have great charts, and are simultaneously supported by favorable fundamentals and optics. Why? Because when great charts converge on favorable fundamentals and optics, you usually get a winning stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Momentum Stocks to Buy On the Dip Without further ado, then, let's take a look at five stocks to buy with great charts -- and strong fundamentals and optics, too. Stocks to Buy with Great Charts: Okta (OKTA)First up, we have a momentum cloud stock, Okta (NASDAQ:OKTA), which was killed amid the massive September shift from momentum stocks to cloud stocks. And its fundamentals, optics and technicals all say it should bounce back in a big way soon.Let's start with the chart. Throughout the summer of 2019, OKTA stock was forming a bearish head-and-shoulders pattern. Indeed, that head-and-shoulders pattern ended with a big plunge at the end of the summer. But, it appears that this head-and-shoulders pattern has now fully played out. That is, the stock has retraced its way all the way back to the starting point of that head-and-shoulders pattern. OKTA stock appears to be finding support there. It also should find support at the 200-day moving average, which happens to be right around the same level.The technical picture implies that the worst of the recent OKTA selloff is over, meaning the coast is clear to buy the dip.On the fundamentals side, Okta is a big growth cloud security company. It has been, still is and will remain a big growth company with big margins, supported by secular tailwinds in cloud, cybersecurity and the internet of things. Nothing about this secular growth narrative has changed over the past few weeks. As such, the fundamentals remain robust here and support further upside in OKTA stock.On the optics side, the momentum-to-value shift which materialized in September won't last forever. History says it will end, and soon. When it does, the optic backdrop will improve and provide support for a rebound in OKTA stock. General Electric (GE)Next up, we have a beaten up industrial giant, General Electric (NYSE:GE). GE's fundamentals, optics and technicals all imply it could be on the verge of a meaningful breakout.Let's start with the chart. There is one very important thing to watch here -- the 50-day moving average. Specifically, after spending several months sharply below its 50-day moving average, GE stock is on the verge of breaking above the 50-day moving average in a meaningful way. GE stock has only done this once before, back in early 2019. That breakout above the 50-day following a long stint below the 50-day led into a big, multi-month rally in GE stock. The same thing could happen this time around.On the fundamentals side, GE's depressed fundamentals are starting to improve. This breaks down into three things. First, the global economy appears to be stabilizing, and that should provide an upward lift for economically sensitive stocks like GE. Second, GE continues to simplify its operations with asset sales and business divestitures -- moves which create more visibility towards sustained profitability in the long run. Third, GE also continues to reduce its debt load, which ultimately reduces operational risk in the long run and should result in continued multiple expansion for the stock.When it comes to the optics, those look good, too. GE is a very economically sensitive stock. No one wants to buy this stock when the economy appears to be decelerating. But, signs are starting to emerge that the global economy is actually improving, and there's a fresh wave of European Central Bank and U.S. Federal Reserve stimuli on the way which should help improve things even further. As such, over the next few months, the global economic outlook should improve. * 7 Tech Stocks You Should Avoid Now In response, investors will buy into beaten up, economically sensitive stocks like GE. The Trade Desk (TTD)Much like Okta, programmatic advertising leader The Trade Desk (NASDAQ:TTD) is a momentum growth stock which: 1) was damaged meaningfully in the recent pivot out of momentum stocks, and 2) looks ready to rebound in an equally meaningful way.The chart here looks compelling. Since January 2018, TTD stock has formed a solid uptrend. Amid this uptrend, the stock has dropped into technically oversold territory (as defined by a Relative Strength Index reading below 35) only a few times. Each time, TTD stock bounced back from those oversold conditions over the subsequent few weeks to months. Right now, TTD stock finds itself in similar oversold territory. History says what comes next is a sizable rebound rally.It helps that the fundamentals for TTD stock remain very robust. This company is a leader in the field of programmatic advertising, which automates the ad transaction process using data and algorithms. This is a secular growth industry supported by the fact that all processes across the globe are becoming data-driven, automated processes. Nothing about this favorable secular growth narrative has changed recently. Indeed, the last thing we heard from the company was a double-beat-and-raise second-quarter print that showed continued robust revenue growth, margin expansion and profit growth.When it comes to the optics with TTD stock, investor demand should return soon. As mentioned with Okta stock, history says that significant momentum-to-value shifts don't last very long, and when they come to a close, they ultimately result in a big rally for momentum stocks. I don't see this time being any different. As such, current weakness in TTD stock should end with a significant rebound rally. Pinterest (PINS)Next up, we have yet another momentum growth stock, Pinterest (NYSE:PINS). PINS has all the necessary ingredients to stage a meaningful rebound here and now.The technical picture for Pinterest looks very similar to the technical picture of Okta. That is, in late summer 2019, PINS stock was forming a bearish head-and-shoulders pattern. That head-and-shoulders pattern has now fully played out. PINS stock dropped and ultimately found support right around the same level that the head-and-shoulders pattern started. From a technical perspective, it looks like the next few months in PINS stock should be defined by a rebound bid to all-time highs.On the fundamentals side of things, PINS stock remains supported by favorable growth fundamentals. Pinterest is a unique social media platform with hundreds of millions of users. Those users don't go to Pinterest for the same reasons they go to Facebook (NASDAQ:FB) or Twitter (NYSE:TWTR). They go to Pinterest for visual discovery and inspiration -- two use cases which lend themselves particularly well to ads. As such, Pinterest should have no problem over the next several years building out its ad business. Thus, PINS stock will be supported by robust revenue and profit growth -- the sum of which should keep PINS stock on a long-term winning trajectory. * 10 Stocks to Sell in Market-Cursed September On the optics side of things, PINS stock should benefit from the fact that its last earnings report was very, very good. Over the next weeks, investors will look for opportunity in the momentum rubble by identifying stocks which most recently had strong momentum. Pinterest had that. Last quarter, the numbers were so good that PINS stock rallied 20% to all-time highs. Activision Blizzard (ATVI) Last, but not least, we have video game publisher Activision Blizzard (NASDAQ:ATVI). ATVI stock seems fundamentally, technically and optically positioned for a big breakout rally over the next 12 months.Starting with the chart, we can see that ATVI stock appears to be in the first few innings of a multi-month technical breakout. Look at the moving averages in the above chart. A golden cross pattern has emerged. The 50-day moving average has poked its head above the 200-day moving average for the first time in several months. This golden cross pattern has emerged only a few times over the past decade. Each time it has emerged in this way, it preceded a multi-month breakout in ATVI stock.2020 could be a big year for Activision. Next-generation video game consoles from Sony's (NYSE:SNY) PlayStation and Microsoft's (NASDAQ:MSFT) Xbox are launching next year, marking the first console refresh cycle in seven years. More than that, these next-gen video game consoles will have cloud gaming capabilities -- yet another huge advance in the video game industry. Also, Activision's game lineup for 2020 should be stellar.On the optics side, you have a long-term winning stock that went through a rough patch in 2018-2019. Now, the stock appears to be bouncing back from that rough patch. Importantly, it's bouncing back ahead of what is shaping up to be a big 2020. That's a pretty compelling rebound story. Thus, I think buying action in ATVI stock should outweigh selling action for the foreseeable future.As of this writing, Luke Lango was long OKTA, TTD, PINS, FB and ATVI. 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 5 Stocks to Buy With Great Charts appeared first on InvestorPlace.
General Electric shares continue to struggle to breakout from 50- and 200-day moving averages despite favorable analyst coverage of its turnaround process.
Aircraft maintenance and airfield testing lead solicitations and contracts awarded this week were two of four major contracts awarded last week by the Department of Defense that are of interest to the community. The other two contracts involve a local company producing laser-guided bomb test sets, as well as dike construction in Corpus Christi.
DEEP DIVE (This is the sixth article in a series about dividend stocks in today’s low interest-rate environment based on interviews with professional investors. Links to the previous articles are below.
Shares of General Electric (NYSE:GE) had enjoyed a strong 2019. The stock bottomed out in December just below $6.50, before General Electric stock rallied more than 75% to $11.27 in February.Source: Carsten Reisinger / Shutterstock.com Since then though, GE stock has been consolidating in a mostly sideways pattern. However, that sideways pattern is starting to develop into a rather negative look. That's even as General Electric stock has remained well-above its December lows. * 7 Tech Stocks You Should Avoid Now It has got investors wondering if there's been a "change in tune" with GE stock and if the sideways action will result in dead money -- or worse, losses -- rather than resolve higher. Before diving into the company, let's look at the technicals.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Trading General Electric StockWe have been covering General Electric stock here on InvestorPlace for quite some time. It's no wonder, given its former place among America's blue-chip companies. That's no longer the case, even among its own industry. Names like Honeywell (NYSE:HON), 3M (NYSE:MMM) and United Technologies (NYSE:UTX) are all considered superior entities.In any regard, we kept such a close eye on GE stock because of its tight trading range. Specifically, we continued to highlight range support at $9 and range resistance near $10.50. The latter elevated itself to around $10.70 in June and July, but we've seen a drastic shift in sentiment since. Click to EnlargeInterestingly enough, those range levels have now doubled in significance, as it highlights two key Fibonacci retracements. The 38.2% retracement sits up at $10.60, while the 61.8% rests at $8.99.The question now is, can GE stock reclaim former range support and the 61.8% near $9?Last month, General Electric stock traded down to support and gapped below it, plunging to $7.65. On the subsequent retest though, this former support level acted as resistance, as GE again pulled back to sub-$8 levels. That's where the "change in tune" reference comes in.Now just under $9 again, bulls need to make a strong showing. If General Electric stock can reclaim the $9 level, it puts the 200-day moving average at $9.25 and the 50-day moving average at about $9.50 on the table.GE stock will need to reclaim those two key moving averages in order to get back to range resistance near $10.60.If $9 acts as resistance, August support at $8 is a possibility. Below that and the August lows, and sub-$7 is on the table. Key Analyst Will Move GE StockA key catalyst for General Electric stock has been JPMorgan analyst Stephen Tusa.Tusa upgraded GE from underweight to neutral in December, sparking an enormous rally. To be clear, he wasn't bullish, just less bearish given that the stock had gone from $30 to $7 in a relatively short period of time.Throughout the past few quarters -- through earnings and investor presentations -- Tusa has been critical of the company and of management's outlook. He has since gone back to his underweight rating. About a month ago, he wrote that the company's fundamentals "continue to look negative."He still maintains an underweight rating and $5 price target on the stock, implying more than 45% downside. GE Stock GrowthFor the most recent quarter, General Electric stock beat on earnings and revenue expectations. It also provided better-than-expected guidance. But not everything was perfect in the quarter.For one, GE warned about headaches stemming from the grounding of Boeing's (NYSE:BA) 737 MAX planes. Specifically, GE's cash flow could take a $1.4 billion hit if the planes remain grounded all year. It could also impact guidance.Growth is far from robust, too. Analysts expect revenue to decline almost 4% year-over-year in 2019. In 2020, estimates call for just a 70 basis point advance. The plus side is that revenue would be done going down in this scenario, but disappointing in that it's still sub-1%.GE is still a few years away from returning to any type of impressive growth for investors. In the meantime, it needs to focus on strengthening its balance sheet and improving its free cash flow. If it can attack the latter, investors -- and Tusa -- will take notice.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Can General Electric Stock Stay Above Vital Support? appeared first on InvestorPlace.
Baker Hughes a GE Co. said Monday it closed a secondary offering of 132.25 million Class A shares by General Electric Co. and certain affiliates at a price of $21.50 a share. The oilfield products song said it also repurchased 11.9 million shares of Class B voting from "one or more" of GE and its affiliates, which means GE now holds less than half of the voting power of the company. Baker Hughes stock jumped 2.2% in morning trading, while GE shares edged up 0.1%. Baker Hughes said the deal reduces the number of individuals GE is entitled to designate to Baker Hughes' board to one from five. And Baker Hughes plans to change its corporate name to Baker Hughes Co., with the ticker symbol for the Class A shares to change to "BKR." Baker Hughes stock has gained 4.9% over the past three months, while GE shares have shed 8.6% and the Dow Jones Industrial Average has gained 3.8%.