We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Electric (GE) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, General Electric (GE - Free Report) closed at $6.69, marking a +1.67% move from the previous day. This move outpaced the S&P 500's daily gain of 1.05%. Meanwhile, the Dow gained 1.44%, and the Nasdaq, a tech-heavy index, added 0.66%.
Prior to today's trading, shares of the industrial conglomerate had lost 5.32% over the past month. This has was narrower than the Conglomerates sector's loss of 5.95% and lagged the S&P 500's loss of 1.56% in that time.
Wall Street will be looking for positivity from GE as it approaches its next earnings report date. This is expected to be July 29, 2020. On that day, GE is projected to report earnings of -$0.12 per share, which would represent a year-over-year decline of 170.59%. Meanwhile, our latest consensus estimate is calling for revenue of $17.25 billion, down 40.16% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.04 per share and revenue of $79.94 billion. These totals would mark changes of -93.85% and -24.38%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for GE. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. GE is currently a Zacks Rank #4 (Sell).
In terms of valuation, GE is currently trading at a Forward P/E ratio of 159.51. This valuation marks a premium compared to its industry's average Forward P/E of 19.68.
Investors should also note that GE has a PEG ratio of 35.45 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Diversified Operations stocks are, on average, holding a PEG ratio of 3.19 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 219, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
General Electric (GE) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, General Electric (GE - Free Report) closed at $6.69, marking a +1.67% move from the previous day. This move outpaced the S&P 500's daily gain of 1.05%. Meanwhile, the Dow gained 1.44%, and the Nasdaq, a tech-heavy index, added 0.66%.
Prior to today's trading, shares of the industrial conglomerate had lost 5.32% over the past month. This has was narrower than the Conglomerates sector's loss of 5.95% and lagged the S&P 500's loss of 1.56% in that time.
Wall Street will be looking for positivity from GE as it approaches its next earnings report date. This is expected to be July 29, 2020. On that day, GE is projected to report earnings of -$0.12 per share, which would represent a year-over-year decline of 170.59%. Meanwhile, our latest consensus estimate is calling for revenue of $17.25 billion, down 40.16% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.04 per share and revenue of $79.94 billion. These totals would mark changes of -93.85% and -24.38%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for GE. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. GE is currently a Zacks Rank #4 (Sell).
In terms of valuation, GE is currently trading at a Forward P/E ratio of 159.51. This valuation marks a premium compared to its industry's average Forward P/E of 19.68.
Investors should also note that GE has a PEG ratio of 35.45 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Diversified Operations stocks are, on average, holding a PEG ratio of 3.19 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 219, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.