#6 - General Electric Company (NYSE:GE)
General Electric Company (NYSE: GE) The latest earnings report from General Electric is further evidence that this once venerable company is having trouble getting out of its own way. Despite naming a new CEO, Larry Culp, who may or may not be able to turn around the company, it was a less than auspicious debut when the company announced that they would miss consensus estimates for both revenue and earnings. To make matters worse, the company also announced they would be cutting their quarterly dividend to just a penny a share. That’s scary enough, but there were other pieces of information in the earnings report that scream sell. One of them was the company’s announcement that they would split their power business into two separate companies. The other piece of ominous news was the company’s admission that the Securities & Exchange Commission (SEC) would be expanding the scope of their investigation regarding the company's accounting practices. But perhaps the worst news for the beleaguered company came from JP Morgan analyst Stephen Tusa who wrote this in response to the company's third-quarter results, "While the stock is down about 70 percent from the peak of $30, this move still does not sufficiently reflect the fundamental facts." At this writing, the stock is trading at $8.74, and while it’s hard to believe that it might go lower, the reality is there’s no compelling reason to buy the stock until investors have the confidence that the unpleasant surprises are in the rearview mirror.
About General Electric
General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. It also offers aftermarket services to support its products. The company operates in the United States, Europe, China, Asia, the Americas, the Middle East, and Africa.
Read More - Current Price
- $168.37
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $201.93 (19.9% Upside)
