GE Aerospace (GE) closed at $287.19 in the latest trading session, marking a +1.14% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.35%. Elsewhere, the Dow saw a downswing of 0.45%, while the tech-heavy Nasdaq depreciated by 0.14%.
Shares of the industrial conglomerate witnessed a loss of 7.59% over the previous month, trailing the performance of the Aerospace sector with its loss of 2.46%, and the S&P 500's gain of 1.2%.
The upcoming earnings release of GE Aerospace will be of great interest to investors. The company's upcoming EPS is projected at $1.4, signifying a 6.06% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $11.23 billion, up 13.64% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.2 per share and revenue of $41.68 billion, indicating changes of +34.78% and -1.34%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for GE Aerospace. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.49% higher. As of now, GE Aerospace holds a Zacks Rank of #3 (Hold).
With respect to valuation, GE Aerospace is currently being traded at a Forward P/E ratio of 45.78. For comparison, its industry has an average Forward P/E of 26.94, which means GE Aerospace is trading at a premium to the group.
Investors should also note that GE has a PEG ratio of 2.21 right now. 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. Currently, this industry holds a Zacks Industry Rank of 80, positioning it in the top 33% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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