This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Stocks in this article: GE

NEW YORK (TheStreet) -- What's good for Jeff Immelt's General Electric (GE) 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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs