Back to top

Image: Bigstock

General Electric (GE) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

General Electric (GE - Free Report) closed at $12.03 in the latest trading session, marking a -0.74% move from the prior day. This change lagged the S&P 500's daily loss of 0.15%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.24%.

Coming into today, shares of the industrial conglomerate had gained 8.5% in the past month. In that same time, the Conglomerates sector gained 4.84%, while the S&P 500 gained 3.88%.

Wall Street will be looking for positivity from GE as it approaches its next earnings report date. This is expected to be January 29, 2020. In that report, analysts expect GE to post earnings of $0.18 per share. This would mark year-over-year growth of 5.88%. Meanwhile, our latest consensus estimate is calling for revenue of $26.15 billion, down 21.41% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for GE. These recent revisions tend to reflect the evolving nature of short-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. 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 has moved 0.61% lower within the past month. GE is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, GE currently has a Forward P/E ratio of 17.39. This valuation marks a premium compared to its industry's average Forward P/E of 16.99.

It is also worth noting that GE currently has a PEG ratio of 2.58. 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 2.06 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 22% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


General Electric Company (GE) - free report >>

Published in