General Electric (GE) Outpaces Stock Market Gains: What You Should Know
General Electric (GE) closed the most recent trading day at $102.24, moving +0.44% from the previous trading session.
General Electric (GE) closed the most recent trading day at $102.24, moving +0.44% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.14%.
Prior to today's trading, shares of the industrial conglomerate had gained 10.51% over the past month. This has outpaced the Conglomerates sector's gain of 0.24% and the S&P 500's gain of 0.12% in that time.
Investors will be hoping for strength from General Electric as it approaches its next earnings release, which is expected to be January 25, 2022. The company is expected to report EPS of $0.83, up 29.69% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $21.31 billion, down 2.83% from the year-ago period.
It is also important to note the recent changes to analyst estimates for General Electric. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.37% lower. General Electric is currently a Zacks Rank #4 (Sell).
Investors should also note General Electric's current valuation metrics, including its Forward P/E ratio of 25.41. This represents a premium compared to its industry's average Forward P/E of 18.24.
We can also see that GE currently has a PEG ratio of 4.76. 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 was holding an average PEG ratio of 1.37 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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General Electric Company (GE): Free Stock Analysis Report
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