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General Electric (GE) Arm Clinches Light Rail Project Deal

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General Electric Company’s (GE - Free Report) business unit GE Power Conversion recently secured a contract from the John Holland Group for designing, producing and commissioning Traction Power Substations. Financial terms of the contract were not disclosed by the parties involved.

GE’s share price increased 1.3% yesterday, eventually closing the trading session at $78.

Inside the Headlines

Per the contract, GE Power Conversion will supply four units of 1.5 MW 750V DC Traction Power Substations for the third stage of Queensland Government’s Gold Coast Light Rail system. Notably, the John Holland Group’s client GoldLinQ is responsible for designing, operating and maintaining the Gold Coast Light Rail system. The 750V DC Traction Power Substations will incorporate GE’s transformers, switchgear, rectifiers, isolators and circuit breakers.

Upon completion, the light rail project will connect the residents and visitors of Gold Coast to the nearby restaurants, business centers, medical and other facilities.

This light rail project will likely become operational by mid-2025. General Electric has been working on other light rail projects for quite sometime in Australia’s Newcastle, Parramatta and Canberra.

Zacks Rank, Price Performance and Earnings Estimate Trend

General Electric, with an $85.9-billion market capitalization, currently carries a Zacks Rank #5 (Strong Sell). GE stands to benefit from its portfolio-restructuring program, expansion in digital business and efforts to deleverage its balance sheet in the quarters ahead.
 

Zacks Investment Research
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Shares of General Electric have lost 15% compared with the 0.7% decline of its industry in the past three months.

The Zacks Consensus Estimate for second-quarter 2022 earnings has decreased 43.5% to 39 cents in the past 60 days. Also, earnings estimates for 2022 have moved 11.8% south to $2.8 during the same period.

Stocks to Consider

Some better-ranked companies are discussed below:

Griffon Corporation (GFF - Free Report) presently sports a Zacks Rank #1. GFF’s earnings surprise in the last four quarters was 97%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, Griffon’s earnings estimates have increased 40% for fiscal 2022 (ending September 2022). The stock has gained 45.4% in the past three months.

Carlisle Companies Incorporated (CSL - Free Report) presently flaunts a Zacks Rank of 1. Its earnings surprise in the last four quarters was 23%, on average.

In the past 60 days, Carlisle’s earnings estimates have increased 22.8% for 2022. CSL’s shares have gained 21% in the past three months.

Roper Technologies, Inc. (ROP - Free Report) presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2%, on average.

In the past 60 days, ROP’s earnings estimates have increased 1.2% for 2022. The stock has dipped 3.3% in the past three months.