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General Electric (GE) Stock Sinks As Market Gains: What You Should Know

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General Electric (GE - Free Report) closed at $6.48 in the latest trading session, marking a -1.82% move from the prior day. This change lagged the S&P 500's 0.47% gain on the day. Elsewhere, the Dow gained 0.95%, while the tech-heavy Nasdaq added 2.3%.

Coming into today, shares of the industrial conglomerate had lost 47.66% in the past month. In that same time, the Conglomerates sector lost 34.07%, while the S&P 500 lost 28.7%.

GE will be looking to display strength as it nears its next earnings release, which is expected to be April 29, 2020. In that report, analysts expect GE to post earnings of $0.10 per share. This would mark a year-over-year decline of 28.57%. Meanwhile, our latest consensus estimate is calling for revenue of $20.73 billion, down 24.04% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.52 per share and revenue of $90.26 billion, which would represent changes of -20% and -14.62%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for GE. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 10.33% lower. GE currently has a Zacks Rank of #4 (Sell).

Digging into valuation, GE currently has a Forward P/E ratio of 12.75. This valuation marks a premium compared to its industry's average Forward P/E of 9.75.

It is also worth noting that GE currently has a PEG ratio of 2.04. 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. The Diversified Operations industry currently had an average PEG ratio of 1.48 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 198, which puts it in the bottom 23% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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