General Electric (GE - Free Report) closed the most recent trading day at $7.24, moving -0.14% from the previous trading session. This change lagged the S&P 500's 0.83% gain on the day. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 1.43%.
Wall Street will be looking for positivity from GE as it approaches its next earnings report date. This is expected to be July 29, 2020. In that report, analysts expect GE to post earnings of -$0.12 per share. This would mark a year-over-year decline of 170.59%. Our most recent consensus estimate is calling for quarterly revenue of $17.25 billion, down 40.16% from the year-ago period.
GE's full-year Zacks Consensus Estimates are calling for earnings of $0.04 per share and revenue of $79.94 billion. These results would represent year-over-year changes of -93.85% and -24.38%, respectively.
Investors might also notice recent changes to analyst estimates for GE. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 23.26% lower. GE is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that GE has a Forward P/E ratio of 175.76 right now. Its industry sports an average Forward P/E of 19.93, 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 39.06. 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. GE's industry had an average PEG ratio of 2.96 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 223, which puts it in the bottom 13% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.