This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Time to Salute General Electric?

Fundamental factors:

  • The stock is widely followed on Wall Street where 13 brokerage firms assigned 16 analysts to follow the stock
  • Analysts project revenue will rise 1.80% this year and another 4.70% next year
  • Earnings are estimated to increase by 12.40% this year, an additional 12.30% next year and continue to increase by an annual rate of 12.63% for the next 5 years
  • Analysts think the stock should give investors an total annual rate of return of 16% to 22% over the next five years
  • These projections resulted in analysts publishing four strong buy, 10 buy, two hold and no underperform or sell recommendations
  • The company has a B++ financial strength rating
  • The P/E is 14.39 which is slightly lower than the market's P/E of 14.60
  • The dividend rate of 3.45% is about 45% of earnings and higher than the market's dividend rate of 2.40%
  • The company has a plan to divest or lessen its financial divisions and get back to industrial endeavors especially in the areas of energy production
  • Investor interest:

  • As mentioned before this is a widely followed stock on Wall Street and a long-term conservative core holding in most of the firms model portfolios
  • Goldman Sachs, Oppenheimer and Barclays Capital Management all have positive reports released
  • Although Jim Cramer is not high on the stock, Chris Davis and Tobin Smith made positive comments
  • The readers of TheStreet give the stock a B rating
  • Competition

    I always give the market the final vote and during the past year while GE is up about 6%, Siemens (SI) is down 35%, United Technologies (UTX - Get Report) is down 15% and 3M (MMM - Get Report) is down about 4%:

    Siemens

  • TheStreet rating of C+
  • Revenue projected to decrease by 7.70% this year but increase by 4.20% next year
  • Earnings estimated to decrease by 28.40% this year and increase by 11.80% next year
  • Analysts projected annual total return 23% to 27%
  • United Technologies

  • TheStreet rating A-
  • Revenue projected to increase by 5.40% this year and 15.00% next year
  • Earnings estimated to increase by 3.00% this year and 21.22% next year
  • Analysts projected annual total return 14% to 18%
  • 3M

  • TheStreet rating A-
  • Revenue projected to increase by 5.90% this year and 6.37% next year
  • Earnings estimated to increase by 6.40% this year and 9.10% next year
  • Analysts projected total annual rate of return 14% to 18%
  • Conclusion: Personally I like to see a 10-10-10 projection: increase of 10% in sales, earning and total return.

    General Electric is such a large conglomerate that it's very difficult for revenue to increase by much better than the expansion of the worldwide economy.

    If you are a conservative investor who wants a large diversified company with better than average costs control you might want to consider GE. Please watch the moving averages and turtle channel to look for entry and exit points:

    This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

    2 of 2

    Check Out Our Best Services for Investors

    Action Alerts PLUS

    Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    Quant Ratings

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    Stocks Under $10

    David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    14-Days Free
    Only $9.95
    14-Days Free
    Dividend Stock Advisor

    David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Updates with exact steps to take - BUY, HOLD, SELL
    Trifecta Stocks

    Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

    Product Features:
    • Model Portfolio
    • Intra Day Trade alerts
    • Access to Quant Ratings
    Options Profits

    Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

    Product Features:
    • Actionable options commentary and news
    • Real-time trading community
    SYM TRADE IT LAST %CHG
    SI $0.00 0.00%
    GE $27.68 -0.14%
    MMM $160.98 -0.67%
    UTX $118.62 -0.42%
    AAPL $132.54 0.88%

    Markets

    DOW 18,232.02 -53.72 -0.29%
    S&P 500 2,126.06 -4.76 -0.22%
    NASDAQ 5,089.3620 -1.4320 -0.03%

    Partners Compare Online Brokers

    Free Reports

    Top Rated Stocks Top Rated Funds Top Rated ETFs