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's Stochastic Oscillator is staying in oversold zone for 2 days
Be on the lookout for a price bounce soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator 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 39 of 51 cases over the following month. The odds of a continued upward trend are 76%.
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 58 (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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