GE Aerospace GE shares rallied 3.9% in the last trading session to close at $299.81. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 5.2% loss over the past four weeks.
GE Aerospace’s rally is primarily driven by optimism over strong momentum Commercial Engines & Services business. Solid demand for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is supporting the segment’s performance. Also, a growing installed base and higher utilization of engine platforms, driven by strong momentum and growth across commercial & defense sectors, bodes well for the company.
This industrial conglomerate is expected to post quarterly earnings of $1.40 per share in its upcoming report, which represents a year-over-year change of +6.1%. Revenues are expected to be $11.18 billion, up 13.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For GE, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on GE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
GE is part of the Zacks Aerospace - Defense industry. Boeing (BA), another stock in the same industry, closed the last trading session 1.8% higher at $204.38. BA has returned 3.2% in the past month.
For Boeing, the consensus EPS estimate for the upcoming report has changed +1.7% over the past month to -$0.43. This represents a change of +92.7% from what the company reported a year ago. Boeing currently has a Zacks Rank of #4 (Sell).
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GE Aerospace (GE): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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