General Electric’s (GE, $9.46) Belfort plant set for layoff but not a close down
American multinational conglomerate, General Electric’s French head Hugh Bailey in a media interview published on Sunday in France’s Journal Du Dimanche announced that the company is planning to cut jobs in the range of thousands at its eastern France factory but would not close the factory down.
According to the company, the site would continue to remain GE Power’s number one industrial site in Europe, but it would look to explore alternative options for the plant as Belfort's sales of gas turbines halved between 2017 and 2018 as the group struggled to remain competitive.
Currently, the Belfort plant handles gas, steam, nuclear and hydro technology but the company is looking into different alternatives like building aeronautical parts. Further this move, according to the company, is aimed at making its operations more resourceful in France in response to a dwindling market for power plants.
French industrial group, Alstom, was Belfort’s biggest employer until 2014, but then it sold off its gas turbine business to GE. While GE needed backing from the French government for winning the deal had promised to create 1,000 of jobs at the plant.
But now with the gas turbine power plant market collapsing, the company failed its promise and in February GE agreed to pay 50 million euros ($56 million) into a reindustrialization fund for falling short of the target.
This news prompted France’s Economy Minister Bruno Le Maire to say he would fight to save jobs at the site as negotiations kicked off with unions.
GE sees MACD Histogram just turned negative
GE saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 23, 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 may be shifting from an upward trend to a downward trend. In of 55 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 .
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 268 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 78, 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 (3.601) is normal, around the industry mean (7.650). P/E Ratio (14.430) is within average values for comparable stocks, (43.958). GE's Projected Growth (PEG Ratio) (3.316) is slightly higher than the industry average of (2.072). GE has a moderately low Dividend Yield (0.003) as compared to the industry average of (0.021). P/S Ratio (1.463) is also within normal values, averaging (12.099).
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
Market Cap
High and low price notable news
Volume
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.
