We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Electric (GE) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
General Electric (GE - Free Report) closed the most recent trading day at $11.17, moving -1.5% from the previous trading session. This change lagged the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.91%.
Heading into today, shares of the industrial conglomerate had gained 0.44% over the past month, lagging the Conglomerates sector's gain of 1.14% and the S&P 500's gain of 2.64% in that time.
GE will be looking to display strength as it nears its next earnings release. On that day, GE is projected to report earnings of $0.18 per share, which would represent year-over-year growth of 5.88%. Meanwhile, our latest consensus estimate is calling for revenue of $26.20 billion, down 21.26% from the prior-year quarter.
GE's full-year Zacks Consensus Estimates are calling for earnings of $0.61 per share and revenue of $94.50 billion. These results would represent year-over-year changes of -6.15% and -22.29%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 remained stagnant within the past month. GE is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, GE currently has a Forward P/E ratio of 18.59. Its industry sports an average Forward P/E of 17.66, so we one might conclude that GE is trading at a premium comparatively.
It is also worth noting that GE currently has a PEG ratio of 2.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Diversified Operations stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
General Electric (GE) Stock Sinks As Market Gains: What You Should Know
General Electric (GE - Free Report) closed the most recent trading day at $11.17, moving -1.5% from the previous trading session. This change lagged the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.91%.
Heading into today, shares of the industrial conglomerate had gained 0.44% over the past month, lagging the Conglomerates sector's gain of 1.14% and the S&P 500's gain of 2.64% in that time.
GE will be looking to display strength as it nears its next earnings release. On that day, GE is projected to report earnings of $0.18 per share, which would represent year-over-year growth of 5.88%. Meanwhile, our latest consensus estimate is calling for revenue of $26.20 billion, down 21.26% from the prior-year quarter.
GE's full-year Zacks Consensus Estimates are calling for earnings of $0.61 per share and revenue of $94.50 billion. These results would represent year-over-year changes of -6.15% and -22.29%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 remained stagnant within the past month. GE is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, GE currently has a Forward P/E ratio of 18.59. Its industry sports an average Forward P/E of 17.66, so we one might conclude that GE is trading at a premium comparatively.
It is also worth noting that GE currently has a PEG ratio of 2.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Diversified Operations stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.