GE Stock Up, Highest Point Since 2008
NEW YORK (TheStreet) -- General Electric (GE) - Get Report stock is up 0.87% to $32.47 in early Monday afternoon trading, hitting its highest point in eight years.
Josh Brown, CEO of Ritholtz Wealth Management, believes GE's momentum will continue due to underappreciated fundamentals.
"[GE] got out of a lot of lines of business that were financial in nature and the investment community was telling [it] 'we're not interested in this anymore,'" Brown said on CNBC's "Halftime Report."
Now GE focuses on "the very best things," according to Brown, who says aerospace, healthcare, robotics and automation "are four of the most important secular markets over the next five to 10 years."
"You have a company that has gotten rid of the bad stuff [and] has doubled down on the good stuff," Brown noted.
Additionally, Brown sees GE's balance sheet now as flexible enough "to buy back more stock, raise [its] dividends and even do acquisitions." He thinks GE relocation of its headquarters to Boston from Fairfield, CT is strategic because "that's where the talent is in healthcare, biotech, automation and software."
The company "is a different GE than the one from the 90's ... and, frankly, it's a better one," Brown added.
Separately, TheStreet Ratings team rates General Electric as a "hold" with a ratings score of C+.
The primary factors that have impacted TheStreet Ratings team's rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including generally higher debt management risk, weak operating cash flow and poor profit margins.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: GE