General Electric (GE)
Background: General Electric is one of the largest and most diversified industrial corporations in the world. GE makes and sells products for the generation, transmission, distribution, control and utilization of electricity. GE trades an average of 41 million shares per day with a market cap of $222 billion.
52-Week Range: $14.68 to $23.18Book Value: $11.65 Price-to-Book Ratio: 1.8 Earnings Payout Percentage: 52% GE dropped more than 5% in the last month. For those who bought at the top, ouch, but I wouldn't get too excited about selling here and taking a loss. I believe GE is now on sale and ready to move higher. If GE doesn't move higher, you will "have to" settle for the oversized and relatively safe 3.2% yield. That's a big yield in a world with near zero inflation (if you think the government numbers are accurate anyway). Even after losing 5% recently, the one-year gain is over 20%. GE appears to offer much more upside. Analysts are calling for a price target of $24.86 per share. I think they have it too low, and I think a one-year price target closer to $27 is more likely. GE has beaten estimates in three out of the last four quarters, and with next year's earnings estimate of $1.71 per share, the P/E is less than 16. GE is a great name with growth and leadership for only 16 times forward earnings. Short-sellers may be paying attention to GE, but they are not shorting it, and just 0.6% of the float is short based on the last reported numbers. GE Payout Ratio TTM data by YCharts
What is better than buying a bull-trending stock paying a large dividend? How about a bullish dividend-paying stock on sale? At the time of publication the author held no positions in any of the stocks mentioned. Follow @RobertWeinstein This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV