Should I buy GE stock today?
If someone buys GE today, I do believe that there is a high likelihood of positive returns over the next couple of years. GE Aviation and GE Healthcare are attractive businesses with a solid long-term outlook. That being said, GE is not the most attractive industrial company in the world, e. g.
Will GE’s spin-offs lead to a rise in shares?
Still, it seems pretty likely that GE will see its shares climb over the next couple of years, as the spin-offs should unlock value and since the debt reduction efforts in recent years could result in more FCF being available for shareholder returns and other measures.
Will GE continue to recover in 2016?
GE investors that bought and held on through a volatile five-year period still took a huge hit. In fact, $1,000 worth of GE stock bought in 2016 would be worth about $454 today, assuming reinvested dividends. Looking ahead, analysts expect GE to continue to recover in the next 12 months.
Will General Electric be a buy in 5 years?
The short answer is General Electric ( NYSE:GE) will almost certainly be in a better place in the next five years. However, that doesn't necessarily mean the stock is a buy right now, because a lot of things need to go right for the company to be a good value. Let's take a look at what GE could look like in a few years' time.
What is the future of GE stock?
For all of 2022, analysts forecast GE earnings will vault 89% as sales rebound 4%. But General Electric is likely to surpass 2019 EPS of $5.20 only in 2023, FactSet says. Out of 23 analysts on Wall Street, 15 rate GE stock a buy and eight have a hold, while no one has a sell, according to FactSet.
Is GE a good stock to buy 2022?
On a brighter note, the sell-off in the stock means GE now trades at a market cap of just $82.5 billion. Even if it only hits the low end of the free-cash-flow (FCF) 2022 guidance range of $5.5 billion to $6.5 billion, the stock will trade at just 15 times FCF in 2022.
Will GE stock go up 2022?
GE Stock Price Forecast 2022-2023 The forecasted GE price at the end of 2022 is $95.49 - and the year to year change +1%. The rise from today to year-end: +21%. In the middle of 2022, we expect to see $90.45 per 1 GE.
Will GE ever go up?
General Electric's shares appear to be poised for a rebound, based on an analysis of the stock's sell-side analyst price targets. The mean consensus target price for GE is $124.71, which is +25% higher than the company's last traded share price of $99.95 as of January 6, 2022.
Is GE a buy or hold?
General Electric has received a consensus rating of Buy. The company's average rating score is 2.77, and is based on 10 buy ratings, 3 hold ratings, and no sell ratings.
Is General Electric a good buy?
General Electric stock performance, data by YCharts. This pullback represents an excellent buying opportunity for long-term investors. Continued turnaround progress, debt reduction, and the upcoming corporate breakup will likely drive strong gains for GE shareholders over the next several years.
How much will Disney stock be worth in 5 years?
In terms of its 5 year forecast, Wallet Investor projected that the stock could reach $205.57 in April 2027.
Why has GE stock fallen so much?
In 2018, GE—the last original component of the DJIA—was dropped from the index, after years of poor performance and declining revenues. In 2021, the conglomerate announced plans to split into three independent companies specializing in aircraft engines, medical equipment, and power turbines.
Does GE make a profit?
GE Segment Breakdown: Revenue: Aviation, 30%; Power, 23%; Healthcare, 23%; Renewable Energy, 21%; and Corporate, 4%; and Segment Profit: Aviation, 43%; Power, 11%; Healthcare, 27%; Renewable Energy, 0%; and Corporate, 19%. Revenue percentages do not add to 100% due to rounding.
How high can GE?
How high can Dogecoin price go? Because there isn't nearly enough money in the world, it would be nearly impossible for Dogecoin to reach $100. Every $1 increase in the Dogecoin price would necessitate an additional $180 billion in 2030. To reach $100 by 2030, Dogecoin would need to have $18 trillion invested in it.
What is GE target price?
Stock Price Target GEHigh$120.00Median$107.00Low$80.00Average$102.88Current Price$66.00
Why are GE stocks so cheap?
So, why is GE stock so low? To address at least the COVID part, GE has exposure in aviation, healthcare, oil, venture capital, and other hard-hit industries. The year 2020 was hard for everyone, and even analysts from founder Morgan's namesake bank say it's a risky investment for 2021.
Summary
Article Thesis
GE has been a very weak performer over the last couple of years, due to weak fundamentals and continuous asset sales.
How Is GE Stock Doing Now?
General Electric Company's ( GE) decision to split its stock has led to shareholder enthusiasm around the company's future path. In areas such as aviation, General Electric is well-positioned and should see its business recover meaningfully following the pandemic.
Splitting The Pie Into Three Parts
In 2021, General Electric stock has delivered gains of 16% so far, slightly underperforming the broad market. It also performed worse than Siemens ( OTCPK:SIEGY ), but better than Honeywell ( HON) over that time frame.
Where Will GE Stock Be In 5 Years?
In early November, General Electric Company announced a monumental strategic decision: The company will be split into three parts -- Aviation, Healthcare, and Renewable Energy & Power. Spin-offs have become more common in recent months, and they generally are seen as a way to unlock value.
Is GE Stock A Buy, Sell, Or Hold?
Five years from now, there will be three GEs, if the spin-offs happen as planned. Since current shareholders of GE will own shares in all three companies, unless they sell parts of their holdings, one has to look at the "sum of the parts" to gauge how GE will do over the coming years.
Why is the gas turbine market so pessimistic?
Under the assumptions laid out above, GE will generate mid-single-digit returns over the coming years -- not bad, but not great, either. Due to the complexity, ongoing strategic reorganization, and below-average fundamentals, I believe that GE is a higher-risk pick compared to other industrials such as Siemens.
Will GE burn cash?
The pessimistic case is built on the idea that there's overcapacity in the gas turbine market, and there may also be a structural problem due to the falling cost of renewable energy making it relatively more attractive than gas for electricity production.
Is GE going to improve?
Unfortunately, the cycle will turn down in 2020, and GE will burn cash in executing wind power orders made in 2019 and previous years. GE's cash flow should improve in the coming years. Image source: Getty Images.
Is General Electric buying GE?
Simply put, GE is going to have to start demonstrating some improvement in order for investors to feel fully comfortable with even the tepid outlook given above. On a more positive note, if you can think beyond the near-term risk and the current weakness in end markets, there are some reasons for optimism.
Why is the gas turbine market so pessimistic?
No one is buying General Electric ( NYSE:GE) for what it is now but rather for what it could become in a few years. CEO Larry Culp has been perfectly clear that GE's industrials businesses are likely to see cash outflows in 2019 but turn positive in 2020 and then accelerate in 2021.
Will GE burn cash?
The pessimistic case is built on the idea that there's overcapacity in the gas turbine market, and there may also be a structural problem due to the falling cost of renewable energy making it relatively more attractive than gas for electricity production.
Is GE going to improve?
Unfortunately, the cycle will turn down in 2020, and GE will burn cash in executing wind power orders made in 2019 and previous years. Blocks spelling out the words "cash flow.". GE's cash flow should improve in the coming years. Image source: Getty Images.
Is General Electric buying GE?
Simply put, GE is going to have to start demonstrating some improvement in order for investors to feel fully comfortable with even the tepid outlook given above. On a more positive note, if you can think beyond the near-term risk and the current weakness in end markets, there are some reasons for optimism.
1 General Electric Company (GE) Monthly Stock Price Graph For 5 Years
Please try again later. No one is buying General Electric (NYSE: GE) for what it is now but rather for what it could become in a few years. CEO Larry Culp has been perfectly clear that GE's industrials businesses are likely to see cash outflows in 2019 but turn positive in 2020 and then accelerate in 2021.
2 GE Weekly Average Graph For 5 Years
Most websites would carry 5-year price charts plotted with daily prices. The daily swings in prices make the graphs less readable. Hence, instead of the conventional daily prices chart, you are about to see the monthly average prices graph. (The data used for this report is within the range of 01-22-2017 and 01-21-2022.)
3 General Electric Company (GE) Stock Yearly Returns For Last 5 Years
The graph you saw in the first section has a drawback. The monthly average graph is too smooth to miss large and appreciable fluctuations. On the other hand, a daily price graph is going to look cluttered due to a high frequency of swings. Hence, the below chart tries to provide a balance by displaying weekly average prices.
4 Gains Of GE Investor At Different Exit Points Within 5 Years
Looking at 5-year returns helps you get an idea of how the price and profit have moved year-after-year. This section will give you a feel of the kind of fluctuations and gains in the years to come.
5 GE 5 year performance against the stock market
Many will agree that a medium-term investor is one who invests for a time around 5 years. Assume a medium-term investor has put 10000$ in General Electric Company (GE) during the start of 2018.
Conclusion
This section will help you assess the performance of General Electric Company (GE) against the stock market. You will know if GE has moved along with or behaved different compared to the composite index. Below is the graph showing GE vs NYSE Composite (NYA) for the last 5 years.
Want to become a smart investor?
Hopefully, the above report helped you. If you want to analyze the recent performance of General Electric Company (GE) stock, there are two reports to help you.
Summary
Netcials reports section helps you with deep insights into the performance of various assets over the years. We are constantly upgrading and updating our reports section. Feel free to access them. Do not forget to leave your feedback.
Share price performance GM, F, TSLA, SP500
GM has a less than illustrious past in modern electric car development.
The importance of leadership
To provide a comparator for GM, Ford and Tesla here are the near term performance (1-year) and 3-year charts.
The challenge of inertia
The recent revival of Ford ( F) is almost certainly through the clear and decisive leadership of Jim Farley and it shows how important leadership is.
Risk of backing the wrong horse
An often overlooked issue for legacy car makers like GM is the drag of a company whose success is based on a technology that is now being replaced. Clearly the engineers and senior management who were responsible for success in previous years is an issue for management to cope with in a time of big change.
The transforming nature of autonomous driving
A further near term risk relates to the technology that is being adopted in the BEV transition and also how autonomous driving is brought into the overall transition.
Conclusion: GM Stock Deserves Consideration
It is worth examining the arguments raised by Elon Musk in Tesla’s Q4 earnings call about how transforming the switch to autonomous driving is going to be for the auto industry, including profitability of the manufacturers. A valuable product that can be sold as a software update is compelling. See my commentary about this here.
General Electric's Free Cash Flow
Power
- The power segment lies at the heart of the industrial company's problems in recent years. Unfortunately, the heavy-duty gas turbine equipment market has halved in the five years since 2015, partly down to the shift toward the use of renewable energy as a source for electricity production. It's a fact that makes GE's purchase of Alstom's power and grid assets in November …
Healthcare
- Probably the most reliable, but unexciting, of GE's businesses, healthcare is set for low to mid-single-digit growth in earnings and cash flow over the next few years. Given that, excluding the now divested biopharma business, the segment generated just $1.2 billion in FCF in 2019, it's reasonable to assume GE Healthcare will be generating something like $1.3 billion to $1.45 billio…
Renewable Energy
- Renewable energy is arguably the most interesting of GE's business. Culp is trying to engineer a turnaround in renewable energy margin in its onshore wind power business while hoping the company's bet on offshore wind energy pays off. Culp hopes to eventually achieve the high single-digit margins enjoyed by its peers like Vestas and Siemens Gamesa. Data source: General Electr…
Aviation
- There's no way to avoid the fact that the COVID-19 pandemic has significantly impacted the commercial aerospace market, and in turn GE's near-term prospects. The market will surely recover, but over what kind of time frame? Industry insiders like Raytheon Technologies CEO Greg Hayes are expecting it will take at least two to three years before commercial aerospace returns …