Shares of General Electric (GE - Free Report) lost 0.2% during regular hours Thursday, the last day of trading before the company releases its latest quarterly earnings report. Investors clearly displayed apathy ahead of the report, but this is certainly a stock the world will be watching tomorrow as the iconic company looks to rebound.
GE’s recent challenges have been well documented, but it is worth mentioning exactly how bad things have gotten from an investor’s perspective. The stock really has not been the same since the early 2000s, but more recently, shares have been on a steady decline since GE’s post-Recession rally officially ended in late 2016.
Now, the conglomerate is desperately looking to shed underperforming assets in order to pare down its debt, and that is without mentioning how exposed some of its core businesses are to international trade disputes.
According to our latest Zacks Consensus Estimates, analysts expect GE to report adjusted earnings of $0.18 per share and quarterly revenue of $29.82 billion. These results would represent year-over-year changes of -36% and +1%, respectively.
Investors should note that GE’s consensus earnings projection has trended downward over the duration of the quarter. In fact, the Zacks Consensus Estimate for the soon-to-be-reported period has dropped five cents over the past 90 days. This negative estimate revision activity has earned GE a Zacks Rank #4 (Sell).
Looking at share price performance, GE has slumped nearly 50% over the past year, including 2% in the trailing 12 weeks. However, the stock has rebounded about 6.7% this month.
A strong earnings beat might be what GE needs in order to start generating more positive momentum. To gauge how likely the company is to outperform estimates tomorrow morning, we can turn to our exclusive Earnings ESP figure.
Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
GE currently has an Earnings ESP of -0.28%. This figure, in conjunction with its weak Zacks Rank, means that our model is not conclusively calling for an earnings beat.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Shares of General Electric (GE - Free Report) lost 0.2% during regular hours Thursday, the last day of trading before the company releases its latest quarterly earnings report. Investors clearly displayed apathy ahead of the report, but this is certainly a stock the world will be watching tomorrow as the iconic company looks to rebound.
GE’s recent challenges have been well documented, but it is worth mentioning exactly how bad things have gotten from an investor’s perspective. The stock really has not been the same since the early 2000s, but more recently, shares have been on a steady decline since GE’s post-Recession rally officially ended in late 2016.
Now, the conglomerate is desperately looking to shed underperforming assets in order to pare down its debt, and that is without mentioning how exposed some of its core businesses are to international trade disputes.
According to our latest Zacks Consensus Estimates, analysts expect GE to report adjusted earnings of $0.18 per share and quarterly revenue of $29.82 billion. These results would represent year-over-year changes of -36% and +1%, respectively.
Investors should note that GE’s consensus earnings projection has trended downward over the duration of the quarter. In fact, the Zacks Consensus Estimate for the soon-to-be-reported period has dropped five cents over the past 90 days. This negative estimate revision activity has earned GE a Zacks Rank #4 (Sell).
Looking at share price performance, GE has slumped nearly 50% over the past year, including 2% in the trailing 12 weeks. However, the stock has rebounded about 6.7% this month.
A strong earnings beat might be what GE needs in order to start generating more positive momentum. To gauge how likely the company is to outperform estimates tomorrow morning, we can turn to our exclusive Earnings ESP figure.
Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
GE currently has an Earnings ESP of -0.28%. This figure, in conjunction with its weak Zacks Rank, means that our model is not conclusively calling for an earnings beat.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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