In the latest trading session, General Electric (GE) closed at $104.08, marking a -0.61% move from the previous day. This change was narrower than the S&P 500’s 0.69% loss on the day.
Heading into today, shares of the industrial conglomerate had gained 2.67% over the past month, outpacing the Conglomerates sector’s loss of 4.52% and the S&P 500’s loss of 2.58% 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 October 26, 2021. On that day, GE is projected to report earnings of $0.47 per share, which would represent a year-over-year decline of 2.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.24 billion, down 0.94% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.91 per share and revenue of $76.9 billion, which would represent changes of +2287.5% and -3.42%, respectively, from the prior year.
It is also important to note the 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.11% lower. GE is currently a Zacks Rank #3 (Hold).
Digging into valuation, GE currently has a Forward P/E ratio of 54.97. Its industry sports an average Forward P/E of 17.17, 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 10.31. 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. The Diversified Operations industry currently had an average PEG ratio of 1.7 as of yesterday’s close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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.
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General Electric Company (GE): Free Stock Analysis Report
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