Économie

No Need to Rush General Electric Company Stock

No Need to Rush General Electric Company Stock

GE had a horrendous 2017. After a troubling run through the first 10 months of the year, the company announced that it would halve its dividend and look for ways to turn the company around. All said, General Electric stock fell 45% last year. “Data-reactid =” 11 “> Shares of General Electric Company (NYSE: GE had a horrendous 2017. After a troubling run through the first 10 months of the year, the company announced that it would halve its dividend and look for ways to turn the company around. All said, General Electric stock fell 45% last year. However, shares have been rallying hard in 2018. At the beginning of the year, GE was hovering near its 52-week low of $ 17.25. Quickly though, it’s found itself higher by $ 2 per share or more than 11%. It’s got many investors thinking that they’re missing the bottom in General Electric stock. Did We Miss Our Chance to Buy GE? I do not think we’ve missed our chance to buy GE stock. InvestorPlace – Stock Market News, Stock Advice & Trading Tips “data-reactid =” 15 “> InvestorPlace – Stock Market News, Stock Advice & Trading Tips HON ) Boeing Co (NYSE: BA ) and United Technologies Corporation (NYSE: UTX ) are crushing GE stocks over the last few months and quarters. So if investors are bullish on the aerospace industry or industrial sector in general, they are persuaded to be better off with these stocks over GE. “Data-reactid =” 16 “> First, it’s worth pointing out that companies like Honeywell International Inc. (NYSE: HON ) Boeing Co (NYSE: BA ) and United Technologies Corporation (NYSE: UTX ) are crushing GE stocks over the last few months and quarters. So if investors are bullish on the aerospace industry or industrial sector in general, they have definitely been better off sticking with these stocks over GE. While these stocks continue to do, there’s no denying GE’s surge this year. But let’s keep things in perspective. Oil has been rallying, which is now one of the few bright spots for General Electric. Further, both the S & P 500 and Dow Jones Industrial Average have been running higher. Both indices are up more than 3% to start the year, and we have not yet had 10 trading sessions yet. I will not be able to make it easy – but most of the time. It’s only realistic that they cool off a bit. But the biggest reason I feel like we have not missed GE? The fundamentals have not improved. looking for a dividend cut of 25% to 40%, so 50% cut was a bit unexpected. So were the expectations management put out. As a result, General Electric stock did not rally on this bad news. If it had, it would have been more likely that the market was too pessimistic, and the new scenario is now better than expected. “Data-reactid =” 22 “> In November, most analysts were looking for a dividend 25% to 40%, so 50% cut was a bit unexpected. So were the expectations management put out. As a result, General Electric stock did not rally on this bad news. If it had, it would have been better than the market was too pessimistic, and the new scenario is now better than expected. Unfortunately, it was worse than expected. Analysts are forecasting to grow just 0.4% this year and just 1.3% in 2018. Margins will take a big hit. Where to From Here? Despite the lofty fall in the price, the valuation is not all that attractive. GE still trades with a price-to-earnings (P / E) ratio of 24 and a forward P / E ratio of 18.7. One would think after the massive stock decline, GE would have a dirt-cheap valuation. That’s not the case, as expectations have come down with the stock price. A would-be ~ 5% dividend yield would make investors feel better about the lackluster situation. But since it was cut in half, GE stock yields just 2.6%. some point in the future. It’s true, investors are forward looking. But without a single year or a future of data. “Data-reactid =” 27 “> Without a hefty dividend or low valuation and with two straight years of declining earnings on flat sales growth, why go all-in on GE There’s a big reason to jump in now, and I think we could have a better luck at some point in the future . It’s true, investors are forward looking. But not for a year or more ahead of time. been spot-on in calling GE’s decline. Just a few days ago on Jan. GE stock to $ 16 from $ 17. He argues that the company could earn $ 1 in earnings per share this year (consensus calls for $ 1.07). However, it would be the ” lowest quality JPMorgan ‘s Stephen Tusa has a new record of earnings in the sector. was spot-on in calling . Just a few days ago on Jan. GE stock to $ 16 from $ 17. He argues that the company could earn $ 1 in earnings per share this year (consensus calls for $ 1.07). However, it would be the ” lowest quality “Of earnings in the sector. Not exactly a ringing endorsement. General Electric Stock Trading While the fundamentals are weak, the technicals actually look better. GE is moving over the 21-day moving average and 50-day moving average is positive. In fact, the 21-day is now trending higher as well. This intermediate-term trend is good news. chart of GE stock price more Click to Enlarge “data-reactid =” 45 “> Click to Enlarge Story Continues However, I would expect General Electric stock to run between $ 19.50 and $ 20 (blue box). This training could not be better than GE. Further, the MACD on the bottom of the chart could run into some resistance (purple line). Should that be the case, GE will consolidate or turn lower. Unfortunately for bulls, that could be a pretty big move. For now, I stay on the sidelines in General Electric stock. Future Blue Chips and is on Twitter @BretKenwell . As for this writing, Bret Kenwell did not hold a position in any of the above mentioned securities. “Data-reactid =” 54 “> Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As for this writing, Bret Kenwell did not hold a position in any of the above mentioned securities. More From InvestorPlace Compare Brokers “data-reactid =” 60 “> Compare Brokers No Need to Rush Int’l General Electric Company Stock appeared first on InvestorPlace . “data-reactid =” 61 “> The post No Need to Rush General Electric Company Stock appeared first on InvestorPlace .

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