General Electric (GE) closed the most recent trading day at $10.10, moving +1.1% from the previous trading session. This change lagged the S&P 500's 1.16% gain on the day. Elsewhere, the Dow gained 1.27%, while the tech-heavy Nasdaq added 1.29%.
Coming into today, shares of the industrial conglomerate had lost 3.85% in the past month. In that same time, the Conglomerates sector gained 1.19%, while the S&P 500 gained 1.92%.
GE will be looking to display strength as it nears its next earnings release. In that report, analysts expect GE to post earnings of $0.08 per share. This would mark a year-over-year decline of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $26.85 billion, down 6.3% from the prior-year quarter.
GE's full-year Zacks Consensus Estimates are calling for earnings of $0.58 per share and revenue of $117.69 billion. These results would represent year-over-year changes of -10.77% and -3.23%, respectively.
Investors might also notice recent changes to analyst estimates for GE. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 11.22% lower. GE is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, GE is holding a Forward P/E ratio of 17.22. This valuation marks a premium compared to its industry's average Forward P/E of 16.64.
Investors should also note that GE has a PEG ratio of 4.05 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Diversified Operations was holding an average PEG ratio of 1.9 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
General Electric Company (NYSE:GE): Free Stock Analysis Report
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