GE Aerospace is Trading Near 52-Week High: Should You Buy the Stock?

Shares of GE Aerospace GE have been showing impressive gains of late, trading close to its 52-week high of $348.48. The stock closed at $339.81 yesterday, 2.5% below the highest point. Shares of the leading designer and producer of jet engines have surged 73.3% in the past year, outpacing the Zacks sub-industry and S&P 500 composite’s growth of 37.7% and 21.6%, respectively.

The company has also outperformed other industry players like RTX Corporation RTX and L3Harris Technologies, Inc. LHX, which have gained 62.8% and 72.5%, respectively, over the said time frame.

GE Outperforms Industry, S&P 500 & Peers

The stock is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and price stability. This reflects a positive market sentiment and confidence in the company's financial health and long-term prospects.

GE Shares Trading Above 50-Day and 200-Day SMA

Factors Favoring the Company

The strongest driver of GE Aerospace’s business at the moment is strength across its commercial & defense sectors. Solid demand for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is proving beneficial for GE’s Commercial Engines & Services business. During 2025, the company secured more than 500 engine wins at the Dubai Airshow, including deals from flydubai for GEnx engines and Riyadh Air for LEAP-1A engines.

Some of the company’s major contracts include a deal with Qatar Airways to supply more than 400 GE9X and GEnx engines. It represents the largest widebody engine deal in GE Aerospace’s history. The company also secured a deal from International Airlines Group to provide GEnx engines for British Airways’ 32 new Boeing 787 aircraft. GE was also selected by United Airlines to deliver 300 GEnx engines for its new Boeing 787 Dreamliners.

Rising demand for GE’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector is boosting the Defense & Propulsion Technologies business’ performance. In 2025, the company received a $5 billion deal from the U.S. Air Force to supply F110 engines, parts and support services as part of a Foreign Military Sales (FMS) program. Also, the Indefinite Delivery Indefinite Quantity (IDIQ) contract from the U.S. Army to supply F110 engines holds promise.

Rising U.S. & international defense budgets and heightened geopolitical tensions, along with positive airline & airframer dynamics and robust demand for commercial air travel, will augur well for GE Aerospace in the quarters ahead.

GE remains focused on making investments to boost growth. The company targets to invest more than $1 billion in its MRO facilities around the world over the next five years. This includes the acquisition of a dedicated LEAP test cell, which will unlock a major constraint in its shop visit output.

It is also committed to rewarding its shareholders through dividends and share buybacks. In 2025, the company used $1.45 billion (up 44.1% year over year) to pay dividends to its shareholders. In the same year, it also repurchased shares worth $7.4 billion. The company raised its dividend by 30.6% to 36 cents per share in February 2026.

GE’s Earnings Estimate

Earnings estimates for GE have increased over the past 60 days. The Zacks Consensus Estimate for 2026 earnings is pegged at $7.44 per share, indicating year-over-year growth of 16.8%. The consensus mark for 2027 earnings is pinned at $8.61 per share, suggesting year-over-year growth of 15.7%.

Valuation Remains an Overhang

GE Aerospace is trading at a forward 12-month price-to-earnings (P/E) ratio of 44.43X, higher than the industry average of 33.65X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours.

In comparison with GE’s valuation, its peers, RTX Corp. and L3Harris Technologies, are trading cheaper. Notably, RTX Corp. and L3Harris Technologies are currently trading at 30.12X and 30.49X, respectively.

Final Take on GE Stock

Strength across the commercial and defense aerospace markets, buoyed by solid wide-body aircraft demand and robust defense budget, along with its growth investments, positions GE Aerospace favorably for growth in the quarters ahead. Given the strength in most of its served markets, GE has built a sound liquidity position that supports its shareholder-friendly policies.

Despite its expensive valuation, given the positive analyst sentiment and its growth prospects, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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