Ge Stock Buy Or Sell
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.
ge stock buy or sell
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.
Shares of General Electric have jumped in 2023 and since the March 9 event. GE stock topped an 84.13 handle buy point in mid February. The stock went on to peg a multi-year high of 94.94 on March 9 after management gave a strong aerospace outlook.
Now shares have formed a three-weeks tight pattern with a 95.04 buy point. GE stock is roughly 2% below the entry, and a breakout would give the alert investor a chance to add shares ahead of another possible price run and new highs.
The relative strength line for GE stock rallied in the past year, but has flattened out in March. A rising RS line means that a stock is outperforming the S&P 500. It is the blue line in the chart shown.
On key earnings and sales metrics, GE stock earns an EPS Rating of 45 out of a best-possible 99, and an SMR Rating of C, on a scale of A (best) to E (worst). The EPS Rating compares a company's earnings per share growth to all other companies. The SMR Rating reflects sales growth, profit margins and return on equity.
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 F.
The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock. It's packed with all of the company's key stats and salient decision making information. Including the Zacks Rank, Zacks Industry Rank, Style Scores, the Price, Consensus & Surprise chart, graphical estimate analysis and how a stocks stacks up to its peers.
The detailed multi-page Analyst report does an even deeper dive on the company's vital statistics. In addition to all of the proprietary analysis in the Snapshot, the report also visually displays the four components of the Zacks Rank (Agreement, Magnitude, Upside and Surprise); provides a comprehensive overview of the company business drivers, complete with earnings and sales charts; a recap of their last earnings report; and a bulleted list of reasons to buy or sell the stock. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500.
The Value Scorecard identifies the stocks most likely to outperform based on its valuation metrics. This list of both classic and unconventional valuation items helps separate which stocks are overvalued, rightly lowly valued, and temporarily undervalued which are poised to move higher.
The Momentum Scorecard focuses on price and earnings momentum and indicates when the timing is right to enter a stock. The analyzed items go beyond simple trend analysis. The tested combination of price performance, and earnings momentum (both actual and estimate revisions), creates a powerful timeliness indicator to help you identify stocks on the move so you know when to get in and when to get out.
The X Industry (aka Expanded Industry) is a subset of the M (Medium Sized) Industry, which is a subset of the larger Sector category, which is used to classify all of the stocks in the Zacks Universe. The Zacks database contains over 10,000 stocks. All of those stocks are classified into three groups: Sector, M Industry and X Industry. There are 17 Sectors, 60 different M Industries, and 265 X Industries.
For example, a regional bank would be classified in the Finance Sector. Within the Finance Sector, it would fall into the M Industry of Banks & Thrifts. And within the M Industry, it might further be delineated into the X Industry group called Banks Northeast. This allows the investor to be as broad or as specific as they want to be when selecting stocks.
The X Industry values displayed in this column are the median values for all of the stocks within their respective industry. When evaluating a stock, it can be useful to compare it to its industry as a point of reference. Moreover, when comparing stocks in different industries, it can become even more important to look at the relative measures, since different stocks in different industries have different values that are considered normal.
Like the earnings yield, which shows the anticipated yield (or return) on a stock based on the earnings and the price paid, the cash yield does the same, but with cash being the numerator instead of earnings. For example, a cash/price ratio, or cash yield, of .08 suggests an 8% return or 8 cents for every $1 of investment.
Enterprise Value / Earnings Before Interest, Taxes, Depreciation and Amortization is a valuation metric used to measure a company's value and is helpful in comparing one stock to another.
Conventional wisdom says that a PEG ratio of 1 or less is considered good (at par or undervalued to its growth rate). A value greater than 1, in general, is not as good (overvalued to its growth rate). For example, a company with a P/E ratio of 25 and a growth rate of 20% would have a PEG ratio of 1.25 (25 / 20 = 1.25). A company with a P/E ratio of 40 and a growth rate of 50% would have a PEG ratio of 0.80 (40 / 50 = 0.80). Traditionally, investors would look at the stock with the lower P/E and deem it a bargain. But when compared to its growth rate, it does't have the earnings growth to justify its P/E. In this example, the one with the P/E of 40 is the better bargain because it is selling at a discount to its growth rate. So the PEG ratio tells you what you're paying for each unit of earnings growth. 041b061a72