Is Ge Stock A Good Buy
I'm giving away the ending now because the same investors I'm saying are safe to buy the stock also need to understand that, after seeing the company's fourth-quarter earnings and outlook, the recurring theme for 2023 will be patience. Across all three segments (the healthcare segment is now listed separately as GE HealthCare Technologies), it's a case of profit and cash flow headwinds in 2023. The reasons behind the headwinds are what is setting up the company for improved long-term growth.
is ge stock a good buy
After a powerful recent run, the stock isn't cheap on a 2023 basis, but the actions taken this year (including LEAP, offshore wind turbine, and HA gas turbine deliveries) are setting up the company for long-term growth. Investors should look out for commentary on 2024 in the March update.
General Electric (GE) eyes a transformation as an aviation pure play. The latest GE earnings underscored strength in its jet-engine business though supply issues persist, as the big GE breakup looms. Is GE stock a buy in October 2022 as it rallies near a key technical level?
Shares of General Electric fell 0.5% Oct. 25 after its Q3 report, but have rallied since. They now eye a nearly 6% weekly gain, above 77. GE stock is closing upon the 40-week line after regaining the 10-week moving average ahead of quarterly earnings. But it remains more than 33% off its 52-week high.
General Electric shares last broke out in November 2021 on news of GE's three-way split. The breakout quickly fizzled. If GE stock rallies around 80, it might be actionable again. There's no buy point for now.
The relative strength line for GE stock is rising within a longer-term downtrend, according to MarketSmith charts. The RS line rallied for parts of 2020 and 2021 on hopes for GE's turnaround. A rising RS line means that a stock is outperforming the S&P 500. It is the blue line in the chart shown.
General Electric owns an RS Rating of 61, meaning it has outperformed 61% of all stocks over the past year. The Accumulation/Distribution Rating is a B-, on a scale of A+ to a worst E. It's a sign of roughly equal buying and selling of GE shares by big institutions over the past 13 weeks.
GE remains a popular stock with strong institutional support. As of September, 1,851 funds owned shares. GE stock shows zero quarters of rising fund ownership, according to the IBD Stock Checkup tool.
On key earnings and sales metrics, GE stock earns an EPS Rating of 42 out of a best-possible 99, and an SMR Rating of D, on a scale of A+ (best) to E (worst). The EPS Rating compares a company's earnings per share growth vs. all other companies, and its SMR Rating reflects sales growth, profit margins and return on equity.
From a technical perspective, GE stock is rally as earnings show momentum in the key aviation business. Share are above the 10-week average but below longer-term levels, and well off highs. It has further to recover before a buy point can emerge.
Over the long term, buying an index fund, such as SPDR S&P 500 (SPY), would have delivered safer, higher returns than GE stock. If you want to invest in a large-cap stock, IBD offers several strong ideas here.
It's been a mixed year for General Electric (GE 1.65%), with disappointing healthcare and renewable energy earnings offset by robust aerospace and power performance. Still, it might surprise investors that the stock's price decline of 11.6% is an outperformance compared to the S&P 500 index's 20% decline.
The conditions for the GE HealthCare spinoff in January aren't perfect, but investors shouldn't overly discount the stock because of near-term supply chain issues that are likely to prove temporary. Management is planning for a further reduction of $450 million in corporate costs in the coming years. In addition, this is likely to prove a trough year in GE Renewable Energy. GE Power has been turned around, and GE Aviation's recovery is building steam.
After a 33% fall year-to-date, at the current levels, we believe General Electric stock (NYSE: GE) now looks undervalued. GE stock fell from $96 in early January to $65 now. The YTD -33% return for GE marks an underperformance with -22% returns for the broader S&P500 index.
General Electric GE is in the process of its planned split into three different companies focused on Aviation, Healthcare, and Energy. The Healthcare business is expected to split in 2023 and Energy in 2024, leaving the Aviation business with GE. The company has also managed to reduce its debt meaningfully to $33 billion currently, from $70 billion in 2020. High levels of debt has also weighed on GE stock performance in the past.
I ditched corporate America in 1994 and started a management consulting and venture capital firm ( ). I began following stocks in 1981 when I was in grad school at MIT and first analyzed tech stocks as a guest on CNBC in 1998. I became a Forbes contributor in April 2011. My 15th book -- published in November 2020 -- is \"Goliath Strikes Back: How Traditional Retailers Are Winning Back Customers from Ecommerce Startups.\" I appeared eight times in the 2016 documentary: \"We The People: The Market Basket Effect.\" ( ). I also teach business strategy and entrepreneurship at Babson College in Wellesley, Mass. ( -Peter.aspx)
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The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks' proprietary data indicates that General Electric Company is currently rated as a Zacks Rank 2 and we are expecting an above average return from the GE shares relative to the market in the next few months. In addition, General Electric Company has a VGM Score of C (this is a weighted average of the individual Style Scores which allow you to focus on the stocks that best fit your personal trading style). Valuation metrics show that General Electric Company may be fairly valued. Its Value Score of C indicates it would be a neutral pick for value investors. The financial health and growth prospects of GE, demonstrate its potential to perform inline with the market. It currently has a Growth Score of B. Recent price changes and earnings estimate revisions indicate this would not be a good stock for momentum investors with a Momentum Score of D. 041b061a72