In the latest trading session, General Electric (GE - Free Report) closed at $9.26, marking a -1.07% move from the previous day. This change lagged the S&P 500's daily gain of 0.29%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.3%.
Heading into today, shares of the industrial conglomerate had gained 3.65% over the past month, outpacing the Conglomerates sector's gain of 2.52% and the S&P 500's gain of 2.99% in that time.
GE will be looking to display strength as it nears its next earnings release. On that day, GE is projected to report earnings of $0.13 per share, which would represent a year-over-year decline of 7.14%. Meanwhile, our latest consensus estimate is calling for revenue of $29.09 billion, down 1.64% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.63 per share and revenue of $117.68 billion. These totals would mark changes of -3.08% and -3.23%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for GE. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.27% lower within the past month. GE is currently a Zacks Rank #3 (Hold).
Looking at its valuation, GE is holding a Forward P/E ratio of 14.86. For comparison, its industry has an average Forward P/E of 17.51, which means GE is trading at a discount to the group.
Meanwhile, GE's PEG ratio is currently 2.05. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Diversified Operations was holding an average PEG ratio of 1.91 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.