General Electric (GE - Free Report) closed the most recent trading day at $9.14, moving +1.78% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.05%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.3%.
Heading into today, shares of the industrial conglomerate had lost 11.96% over the past month, lagging the Conglomerates sector's gain of 2.88% and the S&P 500's gain of 3.08% in that time.
Investors will be hoping for strength from GE as it approaches its next earnings release, which 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, the Zacks Consensus Estimate for revenue is projecting net sales of $26.92 billion, down 6.07% from the year-ago period.
GE's full-year Zacks Consensus Estimates are calling for earnings of $0.53 per share and revenue of $117.24 billion. These results would represent year-over-year changes of -18.46% and -3.6%, respectively.
It is also important to note the recent changes to analyst estimates for GE. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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 8.33% lower within the past month. GE currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that GE has a Forward P/E ratio of 16.89 right now. For comparison, its industry has an average Forward P/E of 17.27, which means GE is trading at a discount to the group.
It is also worth noting that GE currently has a PEG ratio of 3.97. 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. GE's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% 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.
To follow GE in the coming trading sessions, be sure to utilize Zacks.com.