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General Electric (GE) Stock Moves -0.85%: What You Should Know

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General Electric (GE - Free Report) closed the most recent trading day at $12.87, moving -0.85% from the previous trading session. This change was narrower than the S&P 500's 0.86% loss on the day.

Prior to today's trading, shares of the industrial conglomerate had lost 5.46% over the past month. This has lagged the Conglomerates sector's gain of 2.15% and the S&P 500's gain of 3.22% in that time.

GE will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2021. 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 $18.28 billion, up 2.99% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.26 per share and revenue of $77.82 billion. These totals would mark changes of +2500% and -2.26%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for GE. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.42% higher within the past month. GE currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that GE has a Forward P/E ratio of 50.2 right now. For comparison, its industry has an average Forward P/E of 20.68, which means GE is trading at a premium to the group.

Meanwhile, GE's PEG ratio is currently 11.81. 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 1.73 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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