The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
market share in the global energy-related products market, which includes solar and wind energy, has started to recover from the economic crisis which greatly impacted its operations in the U.S., where it is the largest supplier of energy-related equipment.
The company has also been witnessing strong competition internationally, particularly from Chinese manufacturers such as Sinovel Wind Group and Goldwind in the wind turbine market. GE also operates in the solar industry with companies such as
. Backed by scale, technological advancement and brand presence, we expect GE's energy division market share to improve in the coming years.
Our complete analysis for General Electric's stock is here.
GE's Diverse Product Portfolio
GE offers a diverse set of equipment and services across the entire energy sector such as gas turbines, wind and solar energy, water technology and distributed power generation technologies. GE continues to invest in market-leading technology and services. As part of the U.S. Dept of Energy's Sunshot initiative, GE is working to make
"solar photovoltaic (PV) systems on rooftops more affordable for home owners."
Internationally, GE has recently
debuted with its 2.75 megawatt wind turbine technology in Scotland. This technology is developed to suit a variety of wind regimes, and is the latest in the company's portfolio of multi-megawatt wind turbines.
Historically, the company has invested 4% to 5% of segment revenue into research and development. The company's strong existing portfolio, and commitment to producing the most technologically advanced products should allow for market share growth.
GE's Global Presence in Developed and Emerging Economies
GE has a significant presence across the globe. The company's presence in growing markets such as Asia makes the company well-positioned to capture a large share of equipment and service orders coming from these regions.
In March 2011, GE signed a memorandum of understanding (MoU) with Vietnam's National Power Transmission Corporation (NPT) whereby "both companies will work together to
increase Vietnam's power transmission efficiency and expertise and reduce the risk of power shortage."
Although we estimate that General Electric's energy division market share will increase from an estimated 13.2% in 2012 to 14% by the end of our forecast period, Trefis members project an increase from 14.5% in 2012 to 17.2% during the same period. The member estimates imply an upside of 6% to the Trefis price estimate for GE's stock.
We currently have a
Trefis price estimate of $20 for General Electric's stock, about 20% above the current market price.
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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.