In the latest trading session, General Electric (GE - Free Report) closed at $8.81, marking a +0.11% move from the previous day. This change lagged the S&P 500's 1.3% gain on the day. Elsewhere, the Dow gained 1.41%, while the tech-heavy Nasdaq added 1.75%.
Coming into today, shares of the industrial conglomerate had lost 6.98% in the past month. In that same time, the Conglomerates sector lost 2.86%, while the S&P 500 gained 0.46%.
Investors will be hoping for strength from GE as it approaches its next earnings release. The company is expected to report EPS of $0.13, down 7.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.09 billion, down 1.64% from the year-ago period.
GE's full-year Zacks Consensus Estimates are calling for earnings of $0.64 per share and revenue of $117.56 billion. These results would represent year-over-year changes of -1.54% and -3.33%, respectively.
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. 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.
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 2.56% lower within the past month. GE is currently a Zacks Rank #3 (Hold).
In terms of valuation, GE is currently trading at a Forward P/E ratio of 13.79. Its industry sports an average Forward P/E of 16.28, so we one might conclude that GE is trading at a discount comparatively.
We can also see that GE currently has a PEG ratio of 1.9. 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 1.83 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% 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.