Momentum Stock: General Electric CompanyGeneral Electric is a diversified technology and financial services company. It operates in a vast array of sectors including power generation, aviation, healthcare, and financial services. Headquartered in Boston, Massachusetts, it serves customers in Europe, China, Asia, the Americas, the Middle East, and Africa.
Over the past six months, General Electric's stock price has risen a staggering 70.83%, with a one-year increase of 96.90%. The five-year growth stands at 26.88%, and an all-time increase of 1685.87%. This strong upward price movement could potentially interest investors looking for capital appreciation.
In terms of valuation, General Electric has a trailing P/E ratio of 14.65, which compares favorably with the industry average, implying it is undervalued relative to its earnings. The forward P/E ratio, which considers future earnings, stands at 18.14, indicating that the market expects the company to continue growing. The company's Price/Sales ratio is 1.14, which is relatively low and could signify a good buying opportunity.
A key aspect to note in the fundamentals of GE is its EPS. It had an EPS of 7.25 in the most recent financial year. The estimates for the next year are positive with an anticipated EPS of 4.01, indicating that the company is expected to continue to be profitable.
GE's Revenue Per Share TTM stands at 71.68 and they have a positive Quarterly Revenue Growth YOY of 14.3%, suggesting that GE is generating a considerable amount of revenue compared to its competitors. This makes it a potentially attractive option for investors looking for a company with strong growth prospects.
The company's Return on Equity (ROE) stands at 0.2289, suggesting it is efficient at generating profits from shareholders' equity. GE also has a profit margin of 11.31%, indicating it has been successful at converting sales into profits.
The company's dividend yield stands at a modest 0.003, suggesting it may be an attractive investment for income-focused investors, though the yield is relatively low. The forward annual dividend rate is 0.32, and the company has a consistent history of paying dividends, which could be an appealing feature for income-driven investors.
Analysts have a positive view on the company with a rating of 4.2 out of 5, and the target price set by Wall Street is $107.29, slightly above the current price, indicating a positive outlook for the stock.
Insider trading activities reveal a mixture of sell-offs from some of the company's senior executives, which is not unusual for a company of this size and could be due to personal financial planning rather than a lack of confidence in the company's future. It's also worth noting that institutional ownership in the company is high, with the likes of Capital Research Global Investors and Vanguard Group Inc. holding substantial shares. This high level of institutional ownership often indicates a strong level of confidence in the company's prospects.
Overall, General Electric seems to be a fundamentally strong company, with its robust revenue growth, efficient use of equity, and profitability. Its upward price movement, consistent dividend payout, and favorable analyst ratings further strengthen its case. However, as always, investors should conduct their own thorough research before making investment decisions.
In terms of volatility and risk management, a trailing stop loss of around 10% would have kept you in most of this trade. If it broke below that it could have been a good sign to exit and look for a new entry when the trend resumed but the stock seems to be pretty stable and we are still over a month out from the next earnings report.
As always how you interpret and decide to act on any results is up to you. This is just data not financial or trading advice and past performance is in no way any guarantee of future performance. Think of it as a way to spot stocks you might be interested in and can add to your watch list and perform further research on and or discuss with your broker.
Again. Not trading advice . Industries and companies change. Trends can end. Do your own research / discuss it with your advisor, but might be one to watch.
