General Electric (GE, $7.79) Files Paperwork for Health-Care Unit IPO
GE has decided to move ahead with its plans to spin off its second most profitable business line, sending shares more than 8% higher on Wednesday following the news.
According to Bloomberg report, GE has confidentially filed paperwork for an IPO of its health-care unit - GE Healthcare.
Expected to hit the market in mid-2019, GE is likely to work with JPMorgan (JPM) on the IPO. Further, according to the Bloomberg report, Goldman Sachs (GS), Bank of America, Citigroup (C) and Morgan Stanley (MS) are also expected to work with GE on the IPO.
GE Healthcare realized a net profit of $3.4 billion on total revenue of ~$19 billion in 2017, making it a leading player in the hospital and lab equipment segment. GE Healthcare accounted for nearly 15.8% of the conglomerate’s total sales and 43.2% of its operating profit in 2017, and following the IPO is expected to emerge as one of the largest healthcare companies.
Although the terms of the spin-off are yet to be confirmed, the company under the leadership of CEO Kieran Murphy already revealed its intention of separating the healthcare unit in late June. According to the company, the spin-off is in-line with company’s strategy because it allows them to double down on the core industrial and energy businesses.
GE saw its Stochastic Oscillator recovers from the overbought zone
The Stochastic Oscillator for GE moved out of overbought territory on May 24, 2023. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 55 similar instances where the indicator exited the overbought zone. In of the 55 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for GE moved out of overbought territory on April 25, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for GE turned negative on May 23, 2023. 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 42 similar instances when the indicator turned negative. In of the 42 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 .
GE broke above its upper Bollinger Band on May 17, 2023. 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.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 17, 2023. You may want to consider a long position or call options on GE as a result. In of 85 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 290 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 266 cases where GE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
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 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 77, placing this stock better than average.
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly 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 (3.524) is normal, around the industry mean (4.737). P/E Ratio (14.124) is within average values for comparable stocks, (43.970). Projected Growth (PEG Ratio) (3.244) is also within normal values, averaging (2.092). GE has a moderately low Dividend Yield (0.003) as compared to the industry average of (0.021). P/S Ratio (1.431) is also within normal values, averaging (11.584).
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.
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High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of products for the generation, transmission, distribution, control and utilization of electricity; manufactures aircraft engines and medical equipment
Industry IndustrialMachinery
GE and
Correlation & Price change
A.I.dvisor indicates that over the last year, GE has been loosely correlated with OTIS. These tickers have moved in lockstep 48% of the time. This A.I.-generated data suggests there is some statistical probability that if GE jumps, then OTIS could also see price increases.
