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

What's Good for General Electric May Finally Be Good for Its Stock

NEW YORK (TheStreet) -- What's good for Jeff Immelt's General Electric (GE - Get Report) is truly good for the USA. The problem for investors is it hasn't always been good for GE.

Since becoming CEO in 2001 Immelt has focused the company on the world's biggest problems, especially energy and health care costs. Over the last 10 years GE shares are down over 20% while the S&P 500 has gained over 78%. So far this year GE is down 6% and the S&P is up 7%. Its shares recently traded around $26.

The comparisons are better over different time frames. In the last five years GE shares are up 126% while the S&P 500 is up "only" 114%. At current prices GE sports a yield of 3.35%. Immelt's focus on the long run hasn't always paid off for shareholders in the short run.

That long-term focus may finally be paying off, however, thanks to high energy prices fueled by the Ukraine crisis, and pressure by insurers on hospitals and doctors to automate and push costs down under Obamacare.

IBM Slumps: What Wall Street's Saying

Halliburton Stock Is Not Done Climbing After China Partnership Deal

Shire Agrees to AbbVie $55B Takeover Offer

GE shares rose in today's pre-market trading after it reported quarterly revenue of $36.23 billion and net income of 39 cents per share, the last of which was in line with estimates.

GE, which has a market cap just shy of $264 billion, also expects to bring in $3.1 billion with the spin-off of its credit card unit, now called Synchrony, later this month. The GE focus on heavy industry will increase with the expected sale of its appliances unit. TheStreet considers GE shares a buy.

The GE release on its earnings emphasized that its industrial revenue rose 7% during the quarter, and profits rose 9% to $4.2 billion as margins expanded by 20 basis points year-over-year. Its order backlog at the end of the quarter was $246 billion, up almost 10%. Revenue for all of 2013 was $146 billion. In its release GE focused on new orders for locomotives, gas turbines and oil drilling systems, as well as jet engines.

1 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
GE $26.47 0.61%
AAPL $125.69 -0.25%
FB $87.22 -0.38%
GOOG $525.02 0.41%
TSLA $267.88 -4.23%

Markets

DOW 17,776.91 +93.33 0.53%
S&P 500 2,081.34 +12.58 0.61%
NASDAQ 4,997.4590 +5.5190 0.11%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs