In the latest trading session, General Electric (GE - Free Report) closed at $9.15, marking a -0.76% move from the previous day. This move lagged the S&P 500's daily gain of 0.35%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 0.7%.
Heading into today, shares of the industrial conglomerate had lost 5.53% over the past month, lagging the Conglomerates sector's gain of 5.43% and the S&P 500's gain of 5.14% 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 April 30, 2019. The company is expected to report EPS of $0.08, down 50% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $26.92 billion, down 6.07% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.53 per share and revenue of $117.24 billion, which would represent changes of -18.46% and -3.6%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 18.41% lower within the past month. GE is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, GE is currently trading at a Forward P/E ratio of 17.34. Its industry sports an average Forward P/E of 16.95, so we one might conclude that GE is trading at a premium comparatively.
Also, we should mention that GE has a PEG ratio of 4.08. 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. The Diversified Operations industry currently had an average PEG ratio of 1.94 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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.
To follow GE in the coming trading sessions, be sure to utilize Zacks.com.