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Zacks Investment Ideas feature highlights: GE Vernova, GE Aerospace's and American Airlines

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For Immediate Release

Chicago, IL – January 28, 2025– Today, Zacks Investment Ideas feature highlights GE Vernova (GEV - Free Report) , GE Aerospace's (GE - Free Report) and American Airlines (AAL - Free Report) .

Buy GE Aerospace (GE - Free Report) After Strong Q4 Earnings Report

Emerging as a separate public company following the spinoff of its alternative energy segment GE Vernova in April 2024, GE Aerospace's expansion is very compelling as a provider of jet engines, components, and integrated systems.

Able to crush Q4 earnings expectations last Thursday, let's see if it's time to buy GE Aerospace stock for more upside.

GE's Strong Q4 Results

GE Aerospace posted Q4 earnings of $1.32 a share, crushing the Zacks EPS Consensus and the company's previous year mark of $1.03 by 28%. This came on adjusted revenue of $9.87 billion which comfortably exceeded estimates of $9.53 billion and rose 16% year over year.

Appearing to be firing on all cylinders, GE Aerospace's total orders were up 46% during Q4. The company also highlighted that it had received orders for more than 4,600 commercial and defense engines, including commitments from American Airlines, British Airways and the Polish Armed Forces.

GE's Positive Guidance

Offering FY25 EPS guidance for what would be its first full year as an independent company, GE Aerospace expects earnings of $5.10-$5.45 per share. This came in range of the current Zacks EPS Consensus of $5.22 or 13% growth. Furthermore, GE Aerospace projects another year of low double-digit revenue growth.

GE Dividend Hike

Expecting to generate $6.3 billion-$6.8 billion in free cash flow this year, GE Aerospace plans to raise its dividend by 30% with its annual yield currently at 0.57% or $1.21 per share. Additionally, GE Aerospace plans to increase its share repurchases to $7 billion.

Takeaway

There was a lot to like about GE Aerospace's Q4 report and outlook, but for now, GE lands a Zacks Rank #3 (Hold). Already spiking +15% year to date, more upside for GE may depend on what is hopefully a trend of positive earnings estimate revisions in the coming weeks.

That said, GE Aerospace has made itself a more appealing long-term investment after announcing an increase to its dividend and share repurchase plan.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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GE Aerospace (GE) - free report >>

American Airlines Group Inc. (AAL) - free report >>

GE Vernova Inc. (GEV) - free report >>

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