General Electric (GE, $10.19) shares soar - but will it last?
Shares of General Electric surged more than 13% on Friday to its highest level in three months - in spite of falling short of earnings estimates. The latest report did confirm, however, that the company is on track for much needed progress. GE's power business has been struggling for some time now with stock declining on earnings in the past 11 out of 13 quarters.
GE’s CEO Larry Culp is positive that the company will make substantial progress in the coming months, but for now there will be some residual effects from non-operational headwinds related to legal settlements and legacy project erosion. Further, GE’s cash flow may also be affected by restructuring and investments in health-care, but Culp assured shareholders that these are just one-time items, which in the long run will cool off.
To buttress Culp’s optimism, analysts claim that whatever challenges the power business is facing today, GE is making a realistic assessment and tailoring a solution. For example, the company has cut 10,000 power jobs, or 15% of that unit’s workforce, reducing its footprint by 30% and taking out $900 million of base costs.
Because of these realistic arrangements, analysts have reasonably raised the price target from $11 to $13, citing the company’s progress in the latest report.
Aroon Indicator for GE shows an upward move is likely
GE's Aroon Indicator triggered a bullish signal on June 17, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 368 similar instances where the Aroon Indicator showed a similar pattern. In of the 368 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 25, 2025. You may want to consider a long position or call options on GE as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GE advanced for three days, in of 346 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Moving Average Convergence Divergence Histogram (MACD) for GE turned negative on June 10, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 55 similar instances when the indicator turned negative. In of the 55 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 60, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. GE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (14.265) is normal, around the industry mean (9.760). P/E Ratio (40.598) is within average values for comparable stocks, (63.588). GE's Projected Growth (PEG Ratio) (9.511) is very high in comparison to the industry average of (2.387). Dividend Yield (0.005) settles around the average of (0.018) among similar stocks. P/S Ratio (7.057) is also within normal values, averaging (9.188).
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General Information
a manufacturer of products for the generation, transmission, distribution, control and utilization of electricity; manufactures aircraft engines and medical equipment
Industry AerospaceDefense
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