General Electric (GE, $8.58) CEO Feels An "Urgency" To Reduce Leverage, Wants To Sell Assets
General Electric CEO Larry Culp says the company’s problems can’t be fixed overnight. "We didn't get to where we are in six weeks so it's going to take a while,” Culp told CNBC on Monday. Culp also said he feels the "urgency" to shrink the company's leverage and plans to do so through asset sales.
Under Culp’s leadership, GE's dividend has been reduced to a penny, and the conglomerate took a $22 billion accounting writedown. Culp mentioned Monday that he is planning to reduce debt further by raising cash through a possible IPO of its healthcare business, sale of its transportation unit and by exiting its Baker-Hughes oil field services business (as suggested by a CNBC article).
What possibly exacerbated the company's stock price decline was the alarming prediction made by JP Morgan Chase analyst C. Stephen Tusa, Jr. (published on Friday) that GE's stock will plummet another -33% to touch $6 by the end of 2019 owing to its mounting debt. GE CEO Culp’s statements on Monday was followed by the stock actually dropping below $8 at one point - for the first time since March 2009.
Tusa, Jr. had also mentioned that GE Capital is nearing a "tipping point" as it is saddled with leverage. Culp told CNBC that the conglomerate would be shrinking its banking arm, while also mentioning that the latter has assets matching liabilities.
Following last month’s credit rating downgrades from both Moody's Investors Services and S&P Global Ratings, GE felt pressured to retract from selling commercial paper (a short-term borrowing vehicle that is relatively less costly) and instead turn to banks for borrowing funds (which is relatively expensive).
As for GE Power, Culp indicated that the company is working hard to turn things around for that segment, as suggested by the CNBC article.
Culp hailed GE Aviation as “crown jewel” as it remains in good shape, even as the several other businesses and financials of the parent conglomerate are in deep waters at present.
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Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
GE's Stochastic Oscillator sits in oversold zone for 3 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where GE's RSI Indicator exited the oversold zone, 13 of 19 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 68%.
The Moving Average Convergence Divergence (MACD) for GE just turned positive on September 23, 2026. Looking at past instances where GE's MACD turned positive, the stock continued to rise in 35 of 51 cases over the following month. The odds of a continued upward trend are 69%.
Following a +0.25% 3-day Advance, the price is estimated to grow further. Considering data from situations where GE advanced for three days, in 270 of 374 cases, the price rose further within the following month. The odds of a continued upward trend are 72%.
GE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GE as a result. In 50 of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 58%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 53%.
The Aroon Indicator for GE entered a downward trend on September 24, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 7 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron SMR rating for this company is 21 (best 1 - 100 worst), indicating very 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 54 (best 1 - 100 worst), pointing to consistent 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 Price Growth Rating for this company is 60 (best 1 - 100 worst), indicating steady 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 Valuation Rating of 83 (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: GE's P/B Ratio (18.727) is slightly higher than the industry average of (6.305). P/E Ratio (37.528) is within average values for comparable stocks, (58.116). Projected Growth (PEG Ratio) (4.046) is also within normal values, averaging (2.564). Dividend Yield (0.005) settles around the average of (0.009) among similar stocks. P/S Ratio (6.523) is also within normal values, averaging (18.330).
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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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