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General Electric (GE) Partners Circle to Improve Health Outcome

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General Electric Company’s (GE - Free Report) business unit GE Healthcare recently entered into a 10-year collaboration deal with U.K.’s leading independent healthcare provider, Circle Health Group. The deal will involve both companies collaborating on improving health outcomes for patients across Circle Health’s network of hospitals in the U.K.

The company’s share price dipped 2.4% yesterday, to eventually close the trading session at $98.25.

Inside the Headline

Per the deal, GE Healthcare will be responsible for providing Circle Health with several types of medical equipment for the latter’s network of around 50 hospitals over 10 years. In financing, GE Healthcare Financial Services will offer about $70 million to procure advanced medical equipment. Also, GE Healthcare will collaborate with construction contractors for medical equipment installation.

As noted, the contract incorporates a servicing agreement between the parties. It will involve GE Healthcare to provide maintenance services for Circle Health’s medical imaging equipment. This also includes technology that would not be offered by GE Healthcare. This apart, the company will provide Circle Health with digital consultancy services to integrate IT systems and electronic patient records, which is underway.

This long-term contract is likely to enable Circle Health’s clinicians to take quicker and more efficient decisions in diagnosis and treatment, thereby enhancing patient care across hospitals.

Separately, GE Digital introduced Autonomous Tuning, a software solution developed for gas turbines. The solution helps gas turbines to run with optimal combustion, thus reducing fuel consumption and emissions.

Zacks Rank, Price Performance and Estimate Trend

General Electric, with a $107.9 billion market capitalization, currently carries a Zacks Rank #4 (Sell). The company has been witnessing softness in the onshore wind market in the United States apart from supply-chain constraints and inflationary pressures. Its portfolio-restructuring program and its focus on product innovation and expansion in the digital business are likely to be beneficial.

Zacks Investment ResearchImage Source: Zacks Investment Research

In the past three months, its share price has decreased 4.8% compared with the industry’s decline of 5.1%.

In the past 30 days, the Zacks Consensus Estimate for the company’s earnings for 2021 (results awaited) has gone down from $2.02 to $2.01, while the same for 2022 has gone up from $4.02 to $4.05.

Stocks to Consider

Some better-ranked companies are discussed below.

Berry Global Group, Inc. (BERY - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Its earnings surprise in the last four quarters was 16.50%, on average.

In the past 30 days, Berry Global’s earnings estimates have increased 0.1% for fiscal 2022 (ending September 2022) and 0.4% for fiscal 2023 (ending September 2023). BERY’s shares have gained 9.4% in the past three months.

Carlisle Companies Incorporated (CSL - Free Report) presently carries a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 38.89%, on average.

In the past 30 days, Carlisle’s earnings estimates have been stable for 2021 (results are awaited) and increased 0.2% for 2022. CSL’s shares have gained 4.5% in the past three months.

Danaher Corporation (DHR - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 24.05%, on average.

Danaher’s earnings estimates have increased 0.1% for 2021 (results are awaited) and 1.4% for 2022 in the past 30 days. DHR’s shares have lost 8.9% in the past three months.

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