General Electric (GE - Free Report) closed the most recent trading day at $8.50, moving -0.7% from the previous trading session. This move lagged the S&P 500's daily gain of 0.48%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.8%.
Prior to today's trading, shares of the industrial conglomerate had gained 26.63% over the past month. This has outpaced the Conglomerates sector's loss of 0.08% and the S&P 500's loss of 2.09% in that time.
GE will be looking to display strength as it nears its next earnings release, which is expected to be January 31, 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. 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 0.95% 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 11.55. This valuation marks a discount compared to its industry's average Forward P/E of 13.94.
Also, we should mention that GE has a PEG ratio of 2.2. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 1.65 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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.