In the latest trading session, General Electric (GE - Free Report) closed at $10.12, marking a +0.7% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.05%, and the tech-heavy Nasdaq lost 0.01%.
Coming into today, shares of the industrial conglomerate had gained 1.82% in the past month. In that same time, the Conglomerates sector lost 1.26%, while the S&P 500 gained 0.34%.
Investors will be hoping for strength from GE as it approaches its next earnings release. The company is expected to report EPS of $0.12, down 36.84% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.88 billion, down 4.07% from the year-ago period.
GE's full-year Zacks Consensus Estimates are calling for earnings of $0.61 per share and revenue of $118.47 billion. These results would represent year-over-year changes of -6.15% and -2.59%, respectively.
Investors should also note any recent changes to analyst estimates for GE. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 remained stagnant within the past month. GE is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, GE is currently trading at a Forward P/E ratio of 16.57. This represents a premium compared to its industry's average Forward P/E of 16.51.
Investors should also note that GE has a PEG ratio of 2.28 right now. 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 1.83 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 39% 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.