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GE to Adopt VR Technology for HTM Professionals' Training

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General Electric's (GE - Free Report) Healthcare business is set to introduce interactive, customizable training options for HTM professionals at AAMI 2018. Notably, the options enabled by the Virtual Reality (VR) technology will facilitate training of the next generation HTM professionals, safely and efficiently.

Every year, the company’s Healthcare business offers training services to over 8,000 HTM professionals. We believe the VR technology will eliminate the need to travel to a GE training facility, which in turn, is likely to save costs. This will allow the conduction of training onsite at a provider’s facility.

Recently, the technology has also been adopted in other industries such as hospitality, retail as well as entertainment.

Our Take

General Electric is poised for long-term growth with improved performances from the emerging markets like India and China. In this regard, the company’s increased investments in key industrial businesses through restructuring, state-of-the-art technology, and R&D initiatives seem to bode well.

Moreover, its three core segments — power, aviation and healthcare equipment — require advanced hi-tech products with a high degree of reliability. These products often generate higher margins and are likely to drive growth in the long run.

In the past three months, shares of this Zacks Rank #3 (Hold) company have lost 1.8%, outperforming the industry’s decline of 3.9%.

Furthermore, with a strong international presence, a significant portion of the company’s total revenues are stemmed from emerging markets. In fact, General Electric has been selling big-ticket items such as locomotives and power turbines to India and China. Moving ahead, it expects to benefit from these regions, given their faster economic growth.

This apart, the company generates solid free cash flow, which allows management to invest in product innovations, acquisitions and business development. Also, stringent cost-cutting measures are likely to improve profitability.

Key Picks

Some better-ranked stocks from the same space are Crane Company (CR - Free Report) , Danaher Corp. (DHR - Free Report) and Raven Industries, Inc. (RAVN - Free Report) . All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Crane exceeded estimates in the trailing four quarters, with an average positive earnings surprise of 2.1%.

Danaher outpaced estimates in the preceding four quarters, with an average positive earnings surprise of 4.1%.

Raven surpassed estimates twice in the trailing four quarters, with an average positive earnings surprise of 9.8%.

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