In the latest trading session, GE Aerospace (GE) closed at $288.45, marking a -3.35% move from the previous day. This change lagged the S&P 500's daily loss of 0.53%. Elsewhere, the Dow lost 0.9%, while the tech-heavy Nasdaq lost 0.38%.
Shares of the industrial conglomerate have depreciated by 3.4% over the course of the past month, outperforming the Aerospace sector's loss of 5.93%, and lagging the S&P 500's loss of 0.5%.
Market participants will be closely following the financial results of GE Aerospace in its upcoming release. The company is expected to report EPS of $1.4, up 6.06% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $11.23 billion, indicating a 13.64% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $6.2 per share and a revenue of $41.68 billion, demonstrating changes of +34.78% and -1.34%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for GE Aerospace. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.49% increase. GE Aerospace is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, GE Aerospace is currently being traded at a Forward P/E ratio of 48.13. This indicates a premium in contrast to its industry's Forward P/E of 27.26.
We can also see that GE currently has a PEG ratio of 2.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense industry currently had an average PEG ratio of 1.95 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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GE Aerospace (GE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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