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GE Poised on Strategic Organic Growth with Healthcare Focus

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General Electric Company (GE - Free Report) marginally outperformed the Zacks categorized Diversified Operations industry with an average return of 6.7% compared with 5.9% for the latter, over a period of 30 days. In addition, over the same time frame, earnings estimates for the current year have been in line. This estimate trend was been impacted by the company’s organic growth, which look promising.

The growing helium crisis, which is a primary component in magnetic resonance imaging (MRI) systems, has been adversely impacting hospitals and patients worldwide. Despite the shortage, the demand for the gas remains unchanged. Addressing this growing crisis, GE Healthcare unveiled Freelium at Radiological Society of North America (RSNA) 2016. This system uses highly advanced magnet technology, which has been designed to use minimal helium in comparison to the conventional MRI magnets. Freelium is designed to use about 20 liters of the gas in comparison with the conventional 2,000 liters usage, and is eco friendly.

RSNA is an international society of radiologists, medical physicists and other medical professionals. The society consists of over 54,000 members, across 136 countries worldwide. RSNA hosts the world’s premier radiology forum, bringing together around 55,000 attendees annually at McCormick Place in Chicago.

The Freelium technology will be incorporated into commercialized products in the future. This will make MRI more accessible and less costly to site and operate. Such advancement will be useful in developing regions that lack the necessary infrastructure.  

GE Healthcare is looking forward to improving the healthcare industry with its new innovative products and partnerships, designed to address major challenges faced by the industry. This will provide enhanced patient experience, better clinical confidence and improve productivity.

The launch of such innovative products and services will help the company set itself apart from its peers in the healthcare industry. In turn, such innovations will augment its top line, going forward.

We continue to be bullish on the strategic expansions in the healthcare ecosystem of this Zacks Rank #4 (Sell) stock. Some better-ranked stocks in this industry include Macquarie Infrastructure Corp. , AO Smith Corp. (AOS - Free Report) and Danaher Corp. (DHR - Free Report) . Both AO Smith and Danaher carry a Zacks Rank #2 (Buy), whereas Macquarie sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank  stocks here.

Macquarie Infrastructure is currently trading at a forward P/E of 69.3x and has beaten estimates twice in the trailing four quarters for an average positive earnings surprise of 29.6%.

AO Smith has a long-term earnings growth expectation of 10.7% and is currently trading at a forward P/E of 26.5x.

Danaher has long-term earnings growth expectation of 11.9% and is currently trading at a forward P/E of 22.0x.

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