J.P. Morgan’s (JPM) Warning Makes GE Slump
J.P. Morgan analyst Stephen Tusa downgraded GE's stock price target to $6 from $10 and said that the industrial conglomerate’s recent earnings were worse than expected on almost all fronts. GE’s shares plummeted by ~10% in Friday’s trading session, putting GE on track for the company’s worst one-day decline since March 2009.
With the decline's from last week, GE is headed towards its lowest close since March 2009, while bringing the losses for the company to around 40% over the past mont. Falling short of earnings expectations and a ratings downgrade from all three main credit-rating firms have brought the onslaught.
Liquidity was also a major concern for the JPM analyst, who said that even after cutting the dividend by ~95% the company had zero enterprise free cash flow to pay off its liabilities worth billions. He further added that while the stock is down ~70% from the peak of $30, this move still does not sufficiently reflect the fundamental facts.
In response to the analyst’s warning, GE responded with a statement insisting that it remains a “fundamentally strong company” with a sound liquidity position. The company further added that it is taking the necessary aggressive measures to strengthen its balance sheet through accelerated deleveraging and by restructuring efforts.
The question is, does the market have any confidence left in GE?
GE sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for GE moved above the 200-day moving average on June 15, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 22, 2026. You may want to consider a long position or call options on GE as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for GE just turned positive on May 20, 2026. Looking at past instances where GE's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
GE moved above its 50-day moving average on May 20, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for GE crossed bullishly above the 50-day moving average on May 22, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GE advanced for three days, in of 357 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 387 cases where GE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 June 15, 2026. 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.
Fundamental Analysis (Ratings)
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 71, 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 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 (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 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 (20.661) is normal, around the industry mean (11.104). P/E Ratio (44.427) is within average values for comparable stocks, (91.517). Projected Growth (PEG Ratio) (8.607) is also within normal values, averaging (4.128). Dividend Yield (0.004) settles around the average of (0.019) among similar stocks. P/S Ratio (7.862) is also within normal values, averaging (37.738).
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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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