In the latest trading session, General Electric (GE) closed at $5.95, marking a -0.92% move from the previous day. This change lagged the S&P 500’s 0.05% gain on the day. At the same time, the Dow added 0.48%, and the tech-heavy Nasdaq lost 0.61%.
Coming into today, shares of the industrial conglomerate had lost 9.09% in the past month. In that same time, the Conglomerates sector lost 0.44%, while the S&P 500 lost 0.52%.
GE will be looking to display strength as it nears its next earnings release. In that report, analysts expect GE to post earnings of -$0.08 per share. This would mark a year-over-year decline of 153.33%. Our most recent consensus estimate is calling for quarterly revenue of $19.05 billion, down 18.46% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.08 per share and revenue of $79.36 billion. These totals would mark changes of -112.31% and -24.93%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for GE. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 47.73% lower. GE is currently a Zacks Rank #4 (Sell).
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.