CNBC Stock Blog — GE Shares Get Bullish Bets Ahead of Earnings — CNBC.com Market News — General Electric - CNBC
Here is the Analysis on GE stock before the Results for tomorrow
Lets look at the Quarterly Revenue beat versus forecast They beat the consensus estimate of 0.27c with 0.29c, Looking the Forward Estimates the Stock is still trading at healthy 16PE multiple compared to industry average of 19. This gives the stock another 10 % room to run if they beat the estimates again.
Here is the Analysis on GE stock before the Results for tomorrow
The GE has run atleast 50 % from its recent lows in 2010. Berkshire increasing investments might have contributed to this sudden rise. GE has always been the Yardstick of US and also World Economy. The Multi conglomerate has presence in every sector from Turbines to papers , from America's to China and Asia to South pacific, its presence is known to influence and be influenced by every change in Global commerce. Its a very Good long term investment considering it is one of the strongest DOW Jones component to date and contributed to at least 2 % rise in the Total Index return in the recent bull Run..
lets look at the recent run from Past Quarter in October 2010 to Jan 2011, The stock has run atleast 20% from its lows of October
Stock Price GE 3 months
XNYS:GE:+2.36|14.69%
Lets look at the Quarterly Revenue beat versus forecast They beat the consensus estimate of 0.27c with 0.29c, Looking the Forward Estimates the Stock is still trading at healthy 16PE multiple compared to industry average of 19. This gives the stock another 10 % room to run if they beat the estimates again.
| GE | Industry Avg | S&P 500 | GE 5Y Avg* | ||
|---|---|---|---|---|---|
| Data as of 01/20/2011, *Price/Cash Flow uses 3-year average. | |||||
| Price/Earnings | 16.1 | 19.6 | 15.5 | 15.5 | |
| Price/Book | 1.7 | 2.5 | 2.2 | — | |
| Price/Sales | 1.3 | 1.2 | 1.3 | — | |
| Price/Cash Flow | 5.3 | 8.4 | 9.3 | — | |
| Dividend Yield % | 2.5 | 2.0 | 2.2 | — | |
If GE beats the estimate we are looking at a Gain of 10% (+/- 2% error)
If they don't beat the estimates we can see the stock price dropping as follows
2c down versus consensus - Stock price $16
1c Down versus consensus - Stock price $17
If they equal the estimates and provides a better guidance for next quarter , we can see the Stock price around $19.5
Good luck Investing
As expected GE beat the consensus and currently trading around $19.5...They beat the consensus by a wide margin 36c versus 29c estimates on 41 billion Revenue...This truly shows U.S Manufacturing and Global Economy is on the road to a faster growth.
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