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.
The 10-day moving average for GE crossed bullishly above the 50-day moving average on April 08, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for GE just turned positive on April 03, 2024. Looking at past instances where GE's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
GE moved above its 50-day moving average on April 03, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GE advanced for three days, in of 313 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 345 cases where GE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 62 cases where GE's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on April 19, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on GE as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 .
GE broke above its upper Bollinger Band on April 03, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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 72, 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (5.999) is normal, around the industry mean (6.518). P/E Ratio (18.821) is within average values for comparable stocks, (34.758). Projected Growth (PEG Ratio) (1.973) is also within normal values, averaging (1.959). Dividend Yield (0.004) settles around the average of (0.017) among similar stocks. P/S Ratio (2.429) is also within normal values, averaging (4.380).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than 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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of products for the generation, transmission, distribution, control and utilization of electricity; manufactures aircraft engines and medical equipment
Industry AerospaceDefense