General Electric (GE - Free Report) closed the most recent trading day at $8.06, moving +0.12% from the previous trading session. This move outpaced the S&P 500's daily loss of 2.48%. Meanwhile, the Dow lost 2.83%, and the Nasdaq, a tech-heavy index, lost 3.04%.
Prior to today's trading, shares of the industrial conglomerate had gained 10.58% over the past month. This has outpaced the Conglomerates sector's loss of 7.3% and the S&P 500's loss of 8.82% 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.85 billion, up 1.42% from the year-ago period.
It is also important to note the recent changes to analyst estimates for GE. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.95% lower within the past month. GE currently has a Zacks Rank of #3 (Hold).
Investors should also note GE's current valuation metrics, including its Forward P/E ratio of 10.86. For comparison, its industry has an average Forward P/E of 13.59, which means GE is trading at a discount to the group.
Meanwhile, GE's PEG ratio is currently 2.07. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 1.63 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.