In the latest trading session, General Electric (GE - Free Report) closed at $12.71, marking a +0.79% move from the previous day. This move outpaced the S&P 500's daily gain of 0.53%. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 0.75%.
Coming into today, shares of the industrial conglomerate had gained 3.19% in the past month. In that same time, the Conglomerates sector gained 2.75%, while the S&P 500 gained 2.16%.
Wall Street will be looking for positivity from GE as it approaches its next earnings report date. This is expected to be October 19, 2018. The company is expected to report EPS of $0.22, down 24.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $29.89 billion, down 10.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.97 per share and revenue of $121.58 billion. These totals would mark changes of -7.62% and -0.42%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for GE. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. GE is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, GE currently has a Forward P/E ratio of 13.03. Its industry sports an average Forward P/E of 18.48, so we one might conclude that GE is trading at a discount comparatively.
We can also see that GE currently has a PEG ratio of 2.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GE's industry had an average PEG ratio of 1.69 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 98, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.