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General Electric (GE) Dips More Than Broader Markets: What You Should Know
General Electric (GE - Free Report) closed at $7.05 in the latest trading session, marking a -1.26% move from the prior day. This move lagged the S&P 500's daily loss of 0.34%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.73%.
Coming into today, shares of the industrial conglomerate had lost 1.38% in the past month. In that same time, the Conglomerates sector gained 4.04%, while the S&P 500 gained 5.71%.
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. The company is expected to report EPS of -$0.13, down 176.47% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.25 billion, down 40.16% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.03 per share and revenue of $79.93 billion, which would represent changes of -95.38% and -24.39%, respectively, from the prior year.
Any recent changes to analyst estimates for GE should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 21.21% lower. GE currently has a Zacks Rank of #4 (Sell).
Investors should also note GE's current valuation metrics, including its Forward P/E ratio of 219.69. This valuation marks a premium compared to its industry's average Forward P/E of 20.83.
Also, we should mention that GE has a PEG ratio of 48.82. 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. The Diversified Operations was holding an average PEG ratio of 3.46 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.