GE stock: buy or sell?
Updated on:
September 20th, 2019
2
General Electric Company operates as a digital industrial company worldwide. It operates through Power, Renewable Energy, Oil & Gas, Aviation, Healthcare, Transportation, Lighting, and Capital segments.
Should I buy GE stock?
Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.Check the only buy setup that matches with General Electric stock now:
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | Yes |
| 100d MA crossing up 200d MA | No |
Is General Electric stock a buy?
Financial institutions and banks publish stock ratings everyday.
At Stocks2.com, we gathered 15 ratings published for GE stock in the last month.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-9-5 | Morgan Stanley | Equal | Equal Weight |
| 2019-9-13 | Credit Suisse Group | n/a | Neutral |
| 2019-7-15 | UBS Group | Buy | Neutral |
| 2019-5-2 | Deutsche Bank | n/a | Hold |
| 2019-4-8 | JPMorgan Chase & Co. | Neutral | Underweight |
| 2019-3-8 | Credit Suisse Group | n/a | Neutral |
| 2019-3-8 | Credit Suisse Group | n/a | Neutral |
| 2019-3-6 | Royal Bank of Canada | n/a | Buy |
| 2019-3-6 | JPMorgan Chase & Co. | n/a | Neutral |
| 2019-3-6 | Gordon Haskett | n/a | Underperform |
| 2019-3-4 | Barclays | n/a | Overweight |
| 2019-3-18 | Royal Bank of Canada | n/a | Buy |
| 2019-3-12 | Royal Bank of Canada | n/a | Buy |
| 2019-2-27 | JPMorgan Chase & Co. | n/a | Neutral |
| 2019-2-26 | Cowen | n/a | Hold |
GE stock analysis
Daily outlook
General Electric shares declined -0.53% to $9.37 today.
General Electric ended today at $9.37 and declined a lame -0.53%. On September/13 GE price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. Since SMA100d and SMA200d crossed up on June, GE price slid a -5.92%. From a daily perspective, GE is in a short term uptrend after plotting its last bottom ($7.75, on August 23rd) higher than the previous bottom, and its last top ($9.51, on Sep/12) also over the previous top. Now trading in between its last bottom and last top GE might consolidate in a plain range, waiting to break out over $9.51 or down under $7.75.
Weekly outlook
After boosting a super good 6.85% in a week last week, General Electric closed this week at $9.37 and remained stable a slightly good 0.32%. By mid August GE plunged a bloodcurdling -10.30% in just one week. With this, it's been 4 climbing weeks in a row, soaring a 16.06%.
Since early August, when GE stock price broke down the 40-weeks moving avarage line, it slid $-0.62 per share (-6.21%). Stocks below the 40w moving average line are usually not recommended for average traders. Since SMA20w and SMA40w crossed up late May, GE price slid a -0.64%.
GE stock price history
GE IPO was on November 13th, 1980 at $0.00 per share1. Since then, GE stock surged a inf%, with an average of inf% per year. If you had invested $1,000 in GE stock in 1980, it would worth $inf today.
1: Adjusted price after possible price splits or reverse-splits.
GE stock historical price chart
GE stock reached 52-week highs on October at $13.19, and all-time highs 2000-08-28 with a price of 31.33.
GE stock price target is $11.80
How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we found 15 price targets for GE stock:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-9-5 | Morgan Stanley | Initiates | n/a | $10.00 | - |
| 2019-9-13 | Credit Suisse Group | Reiterates | n/a | $38.00 | - |
| 2019-7-15 | UBS Group | Downgrades | $13.00 | $11.50 | -11.5% |
| 2019-5-2 | Deutsche Bank | Set Price Target | n/a | $10.00 | - |
| 2019-4-8 | JPMorgan Chase & Co. | Downgrades | $6.00 | $5.00 | -16.7% |
| 2019-3-8 | Credit Suisse Group | Set Price Target | n/a | $11.00 | - |
| 2019-3-8 | Credit Suisse Group | Reiterates | n/a | $11.00 | - |
| 2019-3-6 | Royal Bank of Canada | Set Price Target | n/a | $12.00 | - |
| 2019-3-6 | JPMorgan Chase & Co. | Set Price Target | n/a | $6.00 | - |
| 2019-3-6 | Gordon Haskett | Downgrades | n/a | $7.00 | - |
| 2019-3-4 | Barclays | Raises Target | $12.00 | $13.00 | 8.3% |
| 2019-3-18 | Royal Bank of Canada | Set Price Target | n/a | $12.00 | - |
| 2019-3-12 | Royal Bank of Canada | Set Price Target | n/a | $12.00 | - |
| 2019-2-27 | JPMorgan Chase & Co. | Reiterates | $6.00 | $10.66 | 77.7% |
| 2019-2-26 | Cowen | Reiterates | n/a | $8.00 | - |
| (in average) | $9.30 | $11.80 | 27.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
Since last April, when General Electric published its last earnings report, it . As soon as we get its actual EPS from the earnings report, we will extend this review.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 0.23 | n/a |
| 2017-Q3 | 2017-10-20 | 0.49 | 0.29 | -40.8% |
| 2017-Q4 | 2018-01-24 | 0.29 | 0.27 | -6.9% |
| 2018-Q1 | 2018-04-20 | 0.11 | 0.16 | 45.5% |
| 2018-Q2 | 2018-07-20 | 0.18 | 0.19 | 5.6% |
| 2018-Q3 | 2018-10-30 | 0.21 | 0.14 | -33.3% |
| 2018-Q4 | 2019-01-31 | 0.18 | 0.17 | -5.6% |
| 2019-Q1 | 2019-04-18 | 0.13 | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
In 2018, General Electric annual sales appreciated a tiny 2.85% to $121,616.00 million dollars from $118,243.00 marked in 2017. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) plummed a -11.21% to -18.38%. General Electric presents anual results in December, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, General Electric TTM sales up to March 2019 were $120,243.00 and earnings $-17,620.00 million dollars. When comparing this TTM figures with the last reported annuality, we can esteem General Electric business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, declined an unpleasant -1.13%. However, profit margin (net income/sales) raised at -18.38%.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $142,710 M | - | $15,160 M10.6% | - |
| 2014 | $147,811 M | 3.57% | $15,233 M10.3% | 0.48% |
| 2015 | $115,158 M | -22.09% | $-6,126.00 M-5.3% | -140.22% |
| 2016 | $119,687 M | 3.93% | $8,831 M7.4% | -244.16% |
| 2017 | $118,243 M | -1.21% | $-8,484.00 M-7.2% | -196.07% |
| 2018 | $121,616 M | 2.85% | $-22,355.00 M-18.4% | 163.50% |
| TTM | $120,243 M | -1.13% | $-17,620.00 M-14.7% | -21.18% |
Quarterly financial results
General Electric reported $27,286.00 M in sales for 2019-Q1, a -18.01% decline compared to previous quarter. Reported quarter income marked $3,588.00 M with a profit margin of 13.15%. Profit margin rocketed a 10.86% compared to previous quarter when profit margin was 2.29%. When comparing revenues to same quarter last year, General Electric sales marked a fateful correction and slightly fell a -4.79%.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $29,190 M | - | $1,510.00 M5.2% | - |
| 2017-Q3 | $31,327 M | 7.32% | $1,836.00 M5.9% | 21.59% |
| 2017-Q4 | $33,828 M | 7.98% | $-8,120.00 M-24.0% | -542.27% |
| 2018-Q1 | $28,660 M | -15.28% | $-1,147.00 M-4.0% | -85.87% |
| 2018-Q2 | $30,104 M | 5.04% | $800.00 M2.7% | -169.75% |
| 2018-Q3 | $29,574 M | -1.76% | $-22,769.00 M-77.0% | -2,946.13% |
| 2018-Q4 | $33,279 M | 12.53% | $761.00 M2.3% | -103.34% |
| 2019-Q1 | $27,286 M | -18.01% | $3,588.00 M13.1% | 371.48% |
General Electric ownership
When you are planning to buy a stock, it's worth to check its ownership structure.General Electric shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.16% of all shares.
In case of General Electric stock, 58.64% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for GE stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to General Electric:
| GE | CAT | DHR | HON | MDT | |
|---|---|---|---|---|---|
| Market cap | $81.8 B | $72.1 B | $105.0 B | $121.2 B | $148.8 B |
| Total shares | 8,730.0 M | 562.6 M | 717.4 M | 719.5 M | 1,340.0 M |
| Float shares | 8,710.0 M | 561.4 M | 636.3 M | 687.1 M | 1,340.0 M |
| - Institutional holdings (%) | 58.6% | 68.6% | 79.9% | 77.1% | 84.2% |
| - Insider holdings (%) | 0.2% | 0.2% | 11.4% | 0.4% | 0.1% |
| Shares in short selling | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
GE summary
| Friday, September 20th, 2019 | |
|---|---|
| Open | $9.46 |
| Close | $9.37 |
| Day range | $9.34 - $9.54 |
| Previous close | $9.42 |
| Session gain | -0.53% |
| Average true range | $0.29 |
| 50d mov avg | $9.31 |
| 100d mov avg | $9.70 |
| 200d mov avg | $9.34 |
| Daily pattern | lt06a |
| Weekly pattern | |
General Electric performance
To measure stock performance is always good to compare with competitors or related stocks. We picked Caterpillar, Danaher, Honeywell International, Medtronic, 3M, Koninklijke Philips, Thermo Fisher Scientific and United Technologies as the bechmarking frame for General Electric stock.| Stock | 3m | 6m | 12m |
|---|---|---|---|
| GEGeneral Electric | -10.42% | -5.92% | -19.57% |
| CATCaterpillar | -3.51% | 0.16% | -15.82% |
| DHRDanaher | 1.96% | 13.15% | 36.18% |
| HONHoneywell Interna... | -2.92% | 9.13% | 7.19% |
| MDTMedtronic | 12.31% | 23.48% | 15.94% |
| MMM3M | -2.88% | -17.03% | -20.43% |
| PHGKoninklijke Phili... | 12.83% | 25.47% | 8.50% |
| TMOThermo Fisher Sci... | 0.70% | 12.47% | 22.04% |
| UTXUnited Technologi... | 5.91% | 9.56% | -2.36% |
General Electric competitors
One check before investing in any stock is to have a look a list of its competitors, in this case for General Electric. We chose 8 companies as General Electric competitors as they are in the same industry or have similar market objectives.- Caterpillar (CAT)
- Danaher (DHR)
- Honeywell International (HON)
- Medtronic (MDT)
- 3M (MMM)
- Koninklijke Philips (PHG)
- Thermo Fisher Scientific (TMO)
- United Technologies (UTX)
Latest GE stock news
- Seeking AlphaGeneral Electric: This Is A Game ChangerAugust 3, 2019
- InvestorPlaceThe Fall of General Electric Stock Can Teach a Great LessonAugust 2, 2019
- Seeking AlphaGeneral Electric: The Turnaround Is Happening As We SpeakAugust 1, 2019
- InvestorPlaceThursday’s Vital Data: General Electric, Twitter and BaiduAugust 1, 2019
- Seeking AlphaGeneral Electric: This Is What Matters, For NowJuly 29, 2019