Stocks of General Electric Company (GE:US, NYSE:GE) increased by one per cent pre-market on Tuesday, June 29, after Wall Street analysts pegged a double-digit growth for the large-cap consumer goods conglomerate.
The Boston-headquartered firm’s share price has surged almost 99 per cent in the past one year. On June 18, the company also announced to distribute a quarterly dividend of US$ 0.01 per share (Payable on July 26).
The industrial stock has gained over 19 per cent this year. However, the stock has gone through a short-term bear market and declined as much as eight per cent in the last one month.
Does General Electric still have the potential to add over 24 per cent growth this year?
Let us analyzes its market fundamentals and price-performance trajectory.
General Electric Company (GE:US, NYSE:GE)
The consumer goods conglomerate operates in renewable energy, aviation sector, and health sector. The company is known for its aerospace engines and medical treatments. Its fastest evolving segment is clean energy equipment, including steam and wind turbines.
Its stock is currently trading at 12.89 apiece, down around 11 per cent against its one-year high of US$ 14.41 apiece (March 9, 2021). If the stock surpasses its 52-week record high, it may beat analysts’ expectations.
The industrials stock has zoomed over 117 per cent from its one-year low of US$ 5.93 apiece (September 11, 2020).
At the previous closing price, the stock was 16 per cent up against its 200-day simple moving average (SMA), indicating a long-term bull run. However, it was down over four per cent compared with 30-day SMA, which represents a current bear market for General Electric Company.
One of the bullish catalysts for the GE stock is renewable energy revenue that may fly in the second half of this year, guided by the US government’s clean energy push.
General Electric's one-year stock performance against Moving Average Multiple. (Chart Source: Refinitiv)
In the first quarter of 2021, the US$ 113 billion market cap firm posted revenue of U$ 3.2 billion from its green energy division and met analyst estimations, a rise of two per cent year over year (YOY). However, its aerospace unit incurred massive loss and plunged as much as 28 per cent YoY, led by the pandemic-caused lockdown.
The company held US$ 32 billion in cash after paying its debt of around US$ 4 billion in the first quarter of 2021.
The company posted top line of US$ 17.1 billion for the quarter, and its earnings per share were US$ 0.3 apiece against the Wall Street-based analysts’ expectation of US$ 0.02 apiece.
Please note: The above constitutes a preliminary view and any interest in stocks and cryptocurrencies should be evaluated further from an investment point of view. The reference data in this article has been partly sourced from Refinitiv.