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GE Aerospace (GE) Exceeds Market Returns: Some Facts to Consider
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In the latest trading session, GE Aerospace (GE - Free Report) closed at $286.88, marking a +1.84% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.47%. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.94%.
Heading into today, shares of the industrial conglomerate had gained 5.17% over the past month, outpacing the Aerospace sector's loss of 0.19% and the S&P 500's gain of 2.32%.
The investment community will be closely monitoring the performance of GE Aerospace in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.45, marking a 26.09% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $10.28 billion, indicating a 14.92% growth compared to the corresponding quarter of the prior year.
GE's full-year Zacks Consensus Estimates are calling for earnings of $5.87 per share and revenue of $40.38 billion. These results would represent year-over-year changes of +27.61% and -4.42%, respectively.
Investors should also note any recent changes to analyst estimates for GE Aerospace. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, GE Aerospace possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, GE Aerospace is presently being traded at a Forward P/E ratio of 47.99. For comparison, its industry has an average Forward P/E of 24.49, which means GE Aerospace is trading at a premium to the group.
Meanwhile, GE's PEG ratio is currently 3.03. 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. The Aerospace - Defense was holding an average PEG ratio of 2.07 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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GE Aerospace (GE) Exceeds Market Returns: Some Facts to Consider
In the latest trading session, GE Aerospace (GE - Free Report) closed at $286.88, marking a +1.84% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.47%. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.94%.
Heading into today, shares of the industrial conglomerate had gained 5.17% over the past month, outpacing the Aerospace sector's loss of 0.19% and the S&P 500's gain of 2.32%.
The investment community will be closely monitoring the performance of GE Aerospace in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.45, marking a 26.09% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $10.28 billion, indicating a 14.92% growth compared to the corresponding quarter of the prior year.
GE's full-year Zacks Consensus Estimates are calling for earnings of $5.87 per share and revenue of $40.38 billion. These results would represent year-over-year changes of +27.61% and -4.42%, respectively.
Investors should also note any recent changes to analyst estimates for GE Aerospace. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, GE Aerospace possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, GE Aerospace is presently being traded at a Forward P/E ratio of 47.99. For comparison, its industry has an average Forward P/E of 24.49, which means GE Aerospace is trading at a premium to the group.
Meanwhile, GE's PEG ratio is currently 3.03. 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. The Aerospace - Defense was holding an average PEG ratio of 2.07 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.