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According to InvestingPro data, GE’s market cap stands at 114.86B USD with a P/E Ratio of 12.27, indicating a healthy valuation. The company’s revenue growth is accelerating, as evidenced by a 23.24% increase in the last twelve months (LTM2023.Q2).
GE’s stock has seen a significant increase of 70% from $65 in early 2021 to around $110 now, despite fluctuating returns. This growth trajectory stands out in the current uncertain macroeconomic climate characterized by high oil prices and elevated interest rates. InvestingPro data shows that GE’s stock has had a high return over the last year, with a 1 Year Price Total Return of 87.31%.
Analysts from Trefis estimate GE’s Q3 2023 revenues at $15.8 billion, a projection primarily driven by increased engine deliveries and service demand in GE’s aviation business. Transactional services at Gas Power and Renewable Energy businesses are also expected to contribute to this projected growth.
InvestingPro Tips highlights that GE’s revenue growth has been accelerating and that the company is a prominent player in the Industrial Conglomerates industry. These factors, combined with the fact that GE operates with a moderate level of debt, make it a solid investment option.
The Q3 2023 adjusted EPS is projected at $0.58 by Trefis, above the consensus estimate of $0.56. This follows a successful Q2 2023, where the adjusted net income was reported at $748 million, marking a 91% increase from the same quarter of the previous year.
GE’s stock valuation is estimated at $126 per share, indicating a potential 17% growth. The company’s ongoing focus on debt reduction is expected to further benefit the stock. GE has significantly reduced its debt from $94 billion in 2019 to around $22 billion currently.
In addition to these positive financial indicators, GE plans to split its energy and power business in the coming year, a move anticipated to unlock additional shareholder value. InvestingPro Tips suggests that strong earnings should allow management to continue dividend payments, which GE has maintained for 53 consecutive years.
While stocks like UPS, CAT, UNP, GOOG, TSLA, and MSFT have struggled to consistently outperform the S&P 500, GE’s performance has been noteworthy. The Trefis High Quality (HQ) Portfolio, which includes GE, has consistently surpassed the S&P 500. This consistent performance places GE in a strong position for future growth.
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