In a reorganization of historic proportions, General Electric has completed its spinoffs of GE Aerospace, GE HealthCare and sustainable-energy-focused GE Vernova. Sometimes called the “crown jewel,” GE Aerospace (GE) has earned that moniker, with shares soaring 358% in two years, from a low in July 2022 until clearing a 170.80 buy point last week. Now GE stock has just flown into a new buy zone.
GE HealthCare (GEHC), which went public at the end of 2022, continues work on a volatile first-stage consolidation. March IPO GE Vernova (GEV) remains on an upward but choppy trajectory.
↑
X
Is Bigger Really Better? Finding The Winners In Every Industry.
GE Stock Set For Takeoff — With A Catch
GE Aerospace flashed a buy signal after the company reported strong earnings on July 23. But GE stock quickly pulled back below the 170.80 entry it had just cleared.
While still trading just below the buy point, the stock has held tough, It found support at its 50-day moving average and popped back into buy range early Thursday with more than a 2% gain. The relative strength line retreated while GE’s current base formed, but has begun to spike.
Investors should note that GE stock’s new consolidation is a third-stage base. Such later-stage patterns entail more risk, especially after such a sharp rise.
That said, GE Aerospace sports a stellar 98 Composite Rating. In a sign of solid institutional demand, the stock earns a B Accumulation/Distribution Rating, a 1.4 up/down volume ratio and six quarters of rising fund ownership.
GE stock has landed a spot on the IBD Big Cap 20 list.
The Aerospace/Defense industry ranks a strong No. 23 out of the 197 groups IBD tracks. Fellow top-rated peers include Heico (HEI), Howmet Aerospace (HWM) and Brazilian aircraft maker Embraer (ERJ).
GE Aerospace Flies Past Expectations
In its new life as an independent company, GE Aerospace is a global provider of aviation engines, systems and services, with annual revenue of over $30 billion.
The aviation technology firm designs, develops and manufactures jet engines, components and integrated systems for all types of aircraft. GE Aerospace also makes aero-derivative gas turbines for marine applications. On top of that, GE Aerospace is the leading resource for integrated engine maintenance.
In the second quarter, the company comfortably beat Wall Street’s earnings expectations, delivering a 62% spike to $1.20 per share and continuing its streak of accelerating growth. For the full year, analysts forecast a 26% rise to $4.10 a share, followed by a 25% gain in 2025 to $5.12 per share
Q2 revenue slowed 43% to $9.1 billion. The company is expected to continue similar slowdowns over the next three quarters, while maintaining sales above the $9 billion mark in each.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
YOU MAY ALSO LIKE:
GE Aerospace Takes Flight, Joins Big Cap 20
Nvidia Breach Puts 8 ‘Secrets’ Of Selling In Focus. No. 2 Is Key.
Microsoft, Google Lead List Of New Buys By Top Funds
Generate New Stock Ideas With IBD Stock Screener
Identify Bases And Buy Points With This Pattern Recognition Tool
