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General Electric (GE) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, General Electric (GE - Free Report) closed at $13.63, marking a -0.73% move from the previous day. This change lagged the S&P 500's 0.47% gain on the day.

Prior to today's trading, shares of the industrial conglomerate had gained 7.1% over the past month. This has outpaced the Conglomerates sector's loss of 1.51% and the S&P 500's loss of 0.12% in that time.

GE will be looking to display strength as it nears its next earnings release. In that report, analysts expect GE to post earnings of $0.04 per share. This would mark year-over-year growth of 126.67%. Our most recent consensus estimate is calling for quarterly revenue of $18.32 billion, up 3.2% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.26 per share and revenue of $77.96 billion, which would represent changes of +2500% and -2.09%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for GE. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GE is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, GE is holding a Forward P/E ratio of 53.32. This represents a premium compared to its industry's average Forward P/E of 20.59.

We can also see that GE currently has a PEG ratio of 12.55. 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. GE's industry had an average PEG ratio of 1.58 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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