While the recent risk of a potential U.S. trade dispute with China might be weighing on GE's stock, its out-sized exposure to oil has likely contributed to the bulk of the stock's decline.
Should you buy GE stock?
Two analysts have rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat.com, Portland General Electric currently has an average rating of “Hold” and a consensus price target of $52.00.
What is wrong with GE stock?
General Electric‘s (GE) decision to spin off its ... and GE needs to acknowledge that trend in their strategy. Michael Abrams is co-founder and Managing Partner of Numerof & Associates.
Why is GE stock so low?
The company had previously anticipated $300 million to $500 million worth of negative impact on free cash flow from the pandemic. So, in terms of free cash flow, things were at least twice as bad as the company had expected. And of course, the stock market loathes negative surprises, so now we’ve got an ultra-low GE stock.
How low will ge go?
GE Stock Will Go From Cheap to Cheaper, J.P. Morgan Says. J.P. Morgan analyst Stephen Tusa cut his General Electric price target to $5 from $7 on Tuesday and called the company’s stock “the ...
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Is GE a good stock to buy 2021?
It fell 66% in 2020 but rebounded 857% in 2021, according to FactSet. In all of 2022, analysts forecast GE earnings will jump 68% as sales rebound 2%. But they now expect General Electric to surpass 2019 EPS of $5.20 only in 2024, FactSet says. Out of 22 analysts on Wall Street, 14 rate GE stock a buy.
What caused GE to fail?
The 2008 financial crisis dealt a huge blow to the company: Its stock fell 42% in 2008, forcing GE to rethink its operations. Warren Buffett even stepped in and invested $3 billion to keep the company afloat.
Is GE good stock to buy now?
The stock is looking like a good value now, but investors should be aware of the near-term risk. 2022 hasn't been a vintage year so farfor industrial giant General Electric (GE -0.74%). The stock is down 21% year to date, and there's real pressure on its full-year earnings outlook.
Will GE rise again?
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 in financial trouble?
GE's decline accelerated during the Great Recession, as the financial crisis revealed it to be overstretched. In 2018, GE—the last original component of the DJIA—was dropped from the index, after years of poor performance and declining revenues.
What is going on with GE?
This morning, CEO Larry Culp announced that GE is going to split into three separate companies. The healthcare unit is going to be spun-off in early 2023, the energy division will be spun-off in early 2024, and the aviation business will be the remaining company.
Is GE a Buy Sell 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.
What is the forecast for GE stock?
Stock Price Forecast The 15 analysts offering 12-month price forecasts for General Electric Co have a median target of 90.00, with a high estimate of 120.00 and a low estimate of 72.00. The median estimate represents a +43.22% increase from the last price of 62.84.
Is GE a good long term 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.
Why is GE stock so low?
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.
What happened
General Electric ( GE -0.12% ) reported earnings today, and showed investors the progress it is making in transforming the organization into a leaner company. But revenue was lower than investors expected, and GE shares were down about 3.5% as of 11 a.m. EDT.
So what
The industrial conglomerate reported earnings of $0.03 per share, when analysts expected a $0.01 profit. Though revenue didn't impress investors, free cash flow was higher than expected, and $1.7 billion higher than the previous-year period, excluding the biopharma unit that was sold last year.
Now what
Aviation continues to be the segment that is struggling the most for the company. While the power, renewable energy, and healthcare segments saw revenue either slightly lower or higher than the year-ago period, aviation revenue declined 28%.
JP Morgan's analyst sees GE as overvalued -- but he isn't saying to sell it
I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well.
What happened
Shares of industrial giant General Electric ( NYSE:GE) -- which is soon to be three industrial giants -- closed Thursday's session down by 1.3%.
So what
In a note out Thursday morning, JP Morgan analyst Stephen Tusa warned that there's a "mechanical flaw" in the valuations that other analysts have been positing for GE stock in the wake of the conglomerate's decision to divide itself into three independent companies.
Now what
It gets worse. Apparently, misvaluing GE Capital isn't the only mistake analysts are making about GE. Earlier this week, Tusa also warned that Wall Street is overvaluing GE's big renewable energy business.
Why did GE Capital lose its balance during the Great Recession?
The GE Capital financial segment nearly toppled the company during the Great Recession because it did not have a competitive advantage over other financial services companies. To this day, the segment is still the subject of complaints that its balance sheet is too opaque and unwieldy.
Who invested in GE in 2008?
Warren Buffett famously stepped in and invested $3 billion in 2008 to stabilize GE’s operations. And GE’s troubles didn’t end with the financial crisis. Its $9.5 billion purchase of French transportation company Alstom’s power business in 2015 was widely considered a flop.
Why is Neutron Jack called Neutron Jack?
He earned the nickname of “Neutron Jack” because of his strategy of eliminating GE’s employees but leaving its physical assets intact. By the time Welch stepped down in 2001, he had transformed GE from a $25 billion manufacturing company into a $130 billion conglomerate of “boundary-less” segments.
What is the aviation unit of GE?
GE's aviation unit is specifically impacted; a unit that is crucial to the company's profitability. GE's aviation unit makes airplane engines for Boeing and Airbus, and is GE's most profitable division, generating $32.9 billion in revenue for the company in 2019. That's 34% of total revenues.
How much did GE cut in 2020?
As of February 2020, shares have fallen a whopping 59% since January 2017, when the company announced it would cut 12,000 jobs. The company’s market cap, which stood at $262 billion at the time, has fallen significantly to $107 billion.
What was the first product of GE?
GE’s earliest products were incandescent light bulbs, an electric locomotive, early x-ray machines, and an electric stove. The company began mass-producing electric home appliances in the 1920s and was soon credited for changing the landscape of the American home. In the years that followed, GE developed vacuum technology ...
When was GE invented?
It was incorporated in 1892 as a result of a merger between the Thomson-Houston Company and the Edison General Electric Company.
What happened
If one of the nation's most important industries, aviation, is on the ropes, and the head of aviation at one of America's biggest blue chip industrial companies has just announced he will resign on Sept. 1, what conclusions should investors draw from this?
So what
Credit for the recovery goes to the Federal Reserve, which on Monday afternoon promised to expand its economic stimulus by buying corporate bonds, supporting their value and helping to lower the interest rates that heavily indebted companies like GE must offer investors to buy their bonds.
Now what
This move by the Fed will help GE, which is carrying more than $88 billion in corporate debt. But it doesn't solve GE's underlying problems today: trying to sell airplane engines to manufacturers like Boeing and Airbus, which are struggling to sell airplanes to airlines whose passenger traffic is way off in the a ge of the coronavirus.
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