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Five Buys Near 52-Week Highs

GE Chart GE data by YCharts

General Electric (GE - Get Report)

Background: GE is one of the largest and most diversified industrial corporations in the world. Its products include major appliances, lighting products, industrial automation products, medical diagnostic imaging equipment, motors, electrical distribution and control equipment, locomotives and power generation and delivery products. GE trades an average of 32.8 million shares a day and has a market cap of $221.1 billion.

52-Week Range: $14.02 to 21.19

52-Week High: $21.19

52-Week Low: $14.02

GE is one of my favorite companies. It was a core holding and a daily trading vehicle for me for several years. In 2009, with a cost basis of near $7, I exited with a small profit. There was a real worry GE might fail due to the GE capital division dragging it down.

Three years later, the stock price has tripled. And after dividends, it has earned an investor even more. With a 68-cent dividend, GE is yielding over 10% for those with a cost basis near $7. The ride doesn't appear to be over yet, though. Profits are moving higher, and so is the stock. At the end of 2007, GE was trading for more than $40 a share, leaving plenty of upside based on historical prices.

The moving averages are clearly in the bull camp. GE may bounce around a bit, but it does appear poised to make the next leg higher.

Short interest is not a factor, with less than 1% of the float short. And analysts are anticipating continued price appreciation; the mean analyst price target is $22.50.

GE's P/E multiple is higher than many blue chip stocks, but not out of line at about 14. If you can grab shares on a dip at about $20.50, consider it a good buy.

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SYM TRADE IT LAST %CHG
HD $108.03 -0.03%
GE $26.78 -0.52%
SIRI $3.82 -0.39%
S $4.82 -3.30%
RF $9.86 -0.50%

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