General Electric (GE) Gains But Lags Market: What You Should Know
General Electric (GE) closed the most recent trading day at $12.71, moving +0.08% from the previous trading session. This move lagged the S&P 500’s daily gain of 1.02%.
Prior to today’s trading, shares of the industrial conglomerate had lost 3.42% over the past month. This has lagged the Conglomerates sector’s gain of 4.62% and the S&P 500’s gain of 3.01% in that time.
Wall Street will be looking for positivity from GE as it approaches its next earnings report date. This is expected to be July 27, 2021. On that day, GE is projected to report earnings of $0.03 per share, which would represent year-over-year growth of 120%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.27 billion, up 2.95% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.25 per share and revenue of $77.82 billion, which would represent changes of +2400% and -2.26%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for GE. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 2.36% lower within the past month. GE is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that GE has a Forward P/E ratio of 50.51 right now. Its industry sports an average Forward P/E of 20.56, 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 11.88. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 1.8 based on yesterday’s closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 57, putting it in the top 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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