Before Friday's opening bell, GE reported lower-than-expected 2016 third-quarter revenue of $29.27 billion. Wall Street was looking for $29.64 billion.
Earnings came in at 32 cents per diluted share, surpassing analysts' projected 30 cents per share.
The Schenectady, NY-based digital industrial company now expects full-year earnings to be in the range of $1.48 to $1.52 per diluted share, vs. its prior estimates of $1.45 to $1.55 per diluted share. Wall Street is looking for adjusted earnings of $1.49 per share for the year.
Industrial names have been hammered lately; no doubt, the stronger dollar has been the culprit. Investors shun names like General Electric when the dollar is strong, as it hinders sales because it cuts into the purchasing power of other countries.
GE hit earnings last week and, as one would expect, the company cited headwinds from a strong buck.
Looking at the chart, since peaking in July the market was way ahead of the company (as usual). Yet, Friday's action was quite telling and perhaps a turn is at hand -- but one day at a time.
The moving average convergence divergence (MACD) is on a buy signal here, and with the massive volume on this day the stock reversed to close only with a minor loss.
Follow-through is key as the 20-day moving average is resistance for now, but a move above there would be quite bullish and set up for a move to $30 (more resistance).
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Separately, 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.
The team rates GE as a Buy with a ratings score of B-. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, impressive record of earnings per share growth, increase in stock price during the past year and notable return on equity. The team feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that it evaluated.
You can view the full analysis from the report here: GE