Bottom line: GE stock is not a buy. Over the long term, buying an index fund, such as SPDR S&P 500 (SPY), would have delivered safer, higher returns than GE stock. If you want to invest in a large-cap stock, IBD offers several strong ideas here.
GE earnings are forecast to nearly double in 2022 to $3.97 per share from an estimated $2.04 per share in 2021; followed by a growth rate of 34.9% in 2023 to $5.68 per share. Current 2022 gross margins are estimated to be 31.1%, up from 27.8% in 2021. Certainly GE faces some potential risks in 2022.
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.
In power, GE believes it can grow sales at a low single-digit percentage and generate operating profit around 8% to 10%. Operating profit should be about $1.1 billion in 2022, growing to about $1.5 billion in 2023. Both numbers are a little better than Wall Street has been modeling.
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.
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.
Twenty years later, we can see clearly that the Manager of the 20th century was not Welch but Alfred P. Sloan, CEO and then Chairman of General Motors (1920-1963). Welch's main achievement was destroying the management model that Sloan had built, causing GE's subsequent near-collapse.
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.
CEO Larry Culp said the combination of supply chain issues, the war in Ukraine, and impacts from the latest COVID-19 outbreak in China are hurting the business.
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.
Stock Price Forecast
The 17 analysts offering 12-month price forecasts for General Electric Co have a median target of 108.00, with a high estimate of 129.00 and a low estimate of 84.00. The median estimate represents a +38.05% increase from the last price of 78.23.
Is GE Power India Ltd a good quality company? Past 10 year's financial track record analysis by Moneyworks4me indicates that GE Power India Ltd is a average quality company.
If you want to sell your shares of GE stock, please contact GE's current transfer agent, Equiniti Trust Company (EQ). Note that sales are subject to a fee of $10 per transaction plus $0.15 per share sold.
General Electric (GE) has 8 splits in our General Electric stock split history database. The first split for GE took place on June 08, 1971. This was a 2 for 1 split, meaning for each share of GE owned pre-split, the shareholder now owned 2 shares.
Currently, Ford Motor Company's price-earnings ratio is 4.8. Ford Motor Company's trailing 12-month revenue is $134.6 billion with a 8.6% profit margin. Year-over-year quarterly sales growth most recently was -4.8%. Analysts expect adjusted earnings to reach $1.934 per share for the current fiscal year.
Culp has sold assets, reduced debt, and cut costs. As a result, GE's free cash flow from its industrials operations is rising again after years of declines.
[Updated: 11/11/2021] GE Stock Update
The stock price of General Electric is up 4.3% in a week, while it's up 7% over the last month. The recent rise can be attributed to the company's announcement of splitting into three different companies focused on Aviation, Healthcare, and Energy.
Fortunately for Buffett, he did not buy common shares of GE stock. Instead, he bought preferred shares, which paid an annual dividend yield of 10%. Those shares were also convertible, meaning Buffett could choose to convert them to common shares.
General Electric (GE), the iconic American corporation that says it brings good things to life, announced in November that it is splitting into three public companies. The firm hopes to focus and simplify its business while reducing its debt.
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.
These spin-offs are not totally unlike what happens when a company splits its stock, said Kelly Shue, a finance professor at the Yale School of Management. “Your original stock is now a share in GE aviation, but you also get these special stock dividends,” Shue said. “You're still going to own all three branches.”
GE Appliances is an American home appliance manufacturer based in Louisville, Kentucky. It has been majority owned by multinational home appliances company Haier since 2016.