General Electric (GE) Plunges Towards a 9.5-Year Low
General Electric’s (GE) share price dropped by ~10% to below $10 a share during Tuesday’s trading day, as its new CEO Larry Culp started the post-earnings conference call.
119 year-old GE’s shares dropped to as low as $9.87 per share on Tuesday, their lowest levels since hitting $9.80 a share in April 2009. The stock was also in-line for its biggest one-day drop since March 2009.
GE reported third-quarter earnings and revenue that again missed analyst’s expectations. However, the major highlight of the conference call was the slashing of the troubled conglomerate's dividend to just a penny a share to save cash, underpinned by worst-than-expected financial stress.
Furthermore, the $22 billion accounting write-down for its beleaguered power division made the balance sheet of the company look all the more debt-riddled.
Confirming the company’s mounting legal problems, the CEO further added that its plan to split up the power division to accelerate a turnaround and expects the dividend cut to provide an additional cash worth $3.9 billion per year. Market analysts mostly forecasted a dividend cut, but not of this magnitude especially for a company that long viewed its stable dividend as a source of pride.
GE sees MACD Histogram crosses below signal line
GE saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on June 05, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 42 instances where the indicator turned negative. In of the 42 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Momentum Indicator moved below the 0 level on June 05, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on GE as a result. In of 84 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 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
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GE advanced for three days, in of 293 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 270 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 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 (3.582) is normal, around the industry mean (7.489). P/E Ratio (14.368) is within average values for comparable stocks, (44.548). Projected Growth (PEG Ratio) (3.298) is also within normal values, averaging (2.120). GE has a moderately low Dividend Yield (0.003) as compared to the industry average of (0.021). P/S Ratio (1.455) is also within normal values, averaging (11.855).
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.
Notable companies
Industry description
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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.
