General Electric Company (GE) Continues to Show Promise as a Bargain Stock
General Electric Company (NYSE:GE) has been making waves in the stock market, and for good reason. With a beta value of 1.30 and an impressive 4.63 million shares traded in the last trading session, GE is proving to be a fantastic bargain stock. Currently valued at $119.36 billion, the company closed the last trade at $110.53 per share, gaining $2.26 or 2.09% during that session.
The GE stock price is 0.24% off its 52-week high of $110.26 and a remarkable 57.64% above its 52-week low of $46.82. Looking at the company’s 10-day average daily trading volume, it stood at 4.32 million shares traded, while the 3-month trading volume is 5.51 million shares.
Analysts widely agree that General Electric Company (GE) is an Overweight stock at the moment, with a recommendation rating of 2.00. Among the analysts, 2 rate it as Overweight, while 7 out of 21 rate it as Hold, and 12 advise it as a Buy. None have rated the stock as Underweight. The expected earnings per share for GE stands at $0.46.
In terms of recent performance, GE has been on an upward trajectory. With a 2.09% gain in the last session, the stock has traded in the green over the last five days, reaching its highest price of $110.53 on Monday, July 10, 2023, seeing a rise of 0.18%. Year-to-date, General Electric Company shares have moved up by an impressive 69.05%, while the 5-day performance has seen a change of 0.62%. Over the past 30 days, the shares of GE have changed by 4.19%. However, the company has lowered its growth outlook for the 2023 fiscal year revenue, with growth estimates for the current quarter at -41.00% and 31.40% for the next quarter.
Wall Street analysts have set a consensus price target for GE at $113.47, which indicates that the shares’ value could jump by 2.59% from current levels. The projected low price target is $90.00, while the high stands at $126.00. In that case, it appears that the current price level is -14.0% off the targeted high, and a plunge would see the stock lose 18.57% from its current levels.
When comparing GE’s performance to the wider industry, its shares have underperformed. The company’s shares have gained 55.04% over the past 6 months, with a growth rate of -22.90% for this year compared to -6.70% for the industry. In addition, the company expects its revenue growth for the current and next quarters to be -19.70% and -16.80%, respectively, while the growth estimates for the last fiscal year stood at -18.60%.
Taking a long-term perspective, General Electric Company has achieved annual earnings growth of 16.50% over the past 5 years. Looking ahead, earnings growth for 2023 is expected to be a modest 116.30%, while over the next 5 years, the company’s earnings are projected to increase by 26.50%.
Investors eagerly await General Electric Company’s next earnings report, scheduled to be released in August this year. Despite the company’s debt issue, investors are optimistic about the prospect of better dividends. The forward dividend stands at 0.32 with a share yield of 0.29%. Over the past 12 months, the company’s dividend yield has increased.
Insiders own 0.20% of the company shares, while shares held by institutions stand at an impressive 72.76%, with a share float percentage of 72.90%. Furthermore, General Electric Company boasts a total of 1,960 institutions that hold shares in the company, with the top two institutional holders being Capital Research Global Investors and Vanguard Group, Inc. (The). Capital Research Global Investors holds over 104.32 million shares worth more than $9.97 billion, representing 9.58% of shares outstanding. Similarly, Vanguard Group, Inc. holds over 87.69 million shares worth over $8.38 billion, representing 8.05% of shares outstanding.
General Electric Company shows great promise as a bargain stock, with its recent performance and analyst consensus suggesting positive growth. While the stock has underperformed the wider industry, the company’s future earnings and dividends hold considerable potential. Investors will be closely monitoring the upcoming earnings report in August, eager to see if General Electric Company can deliver on its optimistic outlook.
