Back to top

General Electric (GE) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

General Electric (GE - Free Report) closed at $7.27 in the latest trading session, marking a -1.62% move from the prior day. This change lagged the S&P 500's daily gain of 0.86%. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 0.38%.

Prior to today's trading, shares of the industrial conglomerate had lost 4.52% over the past month. This has was narrower than the Conglomerates sector's loss of 8.86% and the S&P 500's loss of 7.55% in that time.

Wall Street will be looking for positivity from GE as it approaches its next earnings report date. This is expected to be January 23, 2019. On that day, GE is projected to report earnings of $0.18 per share, which would represent a year-over-year decline of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $31.85 billion, up 1.42% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.67 per share and revenue of $120.18 billion, which would represent changes of -36.19% and -1.56%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for GE. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 has moved 0.64% lower within the past month. GE currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, GE currently has a Forward P/E ratio of 11.05. For comparison, its industry has an average Forward P/E of 14.6, which means GE is trading at a discount to the group.

We can also see that GE currently has a PEG ratio of 2.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Diversified Operations stocks are, on average, holding a PEG ratio of 1.61 based on yesterday's closing prices.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 108, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


General Electric Company (GE) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in