General Electric Co. (NYSE: GE) might not be attracting investors as before but solid financials led GE stock to gain 79.56% in a year. GE and nearly all its vertices are performing well with GE Veronica’s Digital business recently acquiring Greenbird Integration Technology AS which is a data integration company focused on utilities.
General Electric Co. (GE) Stock – Financial Analysis
GE says the acquired platform will boost GridOS which is dubbed the world’s first software portfolio designed explicitly for grid orchestration. The software facilitates connecting the systems and integrating data across the grid easily and scalably.
Sales and revenue for Q2 2023 are $18.65 Billion, while in Q1, it was $19.09 Billion. The cost of Goods Sold (COGS) dropped from $14.29 Billion to $13.23 Billion. Net income for the previous quarter grew by 79.27%, while net income before the extraordinary Q2 was negative $772 Million.
Total cash in hand at the end of the most recent quarter (MRQ) is $21.55 Billion, while total debt in a similar time frame is $23.88 Billion. General Electric Co. (NYSE: GE) stock fell 1.54% weekly but gained 6.96% in three months and 70.44% YTD.
General Electric Co. (NYSE: GE) – Technical Analysis
GE stock at press time is trading at $111.79, gaining 0.75%; previous close and open were at $110.96 and $110.30, respectively. The 52-week range is from $48.31 to $117.96, hinting that a small jump could cause new highs. With an average volume of 6.43 Million shares, the market cap is $121.67 Billion.
The trailing twelve-month (TTM) price-to-earnings (P/E) ratio is 12.11 showcasing an undervalued stock price. At the same time, the (TTM) earnings per share (EPS) is $9.23 hinting at financial strength. Analysts placed a 2.77 rating for moderate buy and estimated a price target at $120.00 with a 7.3% upside.
General Electric reported its last earnings on July 25, 2023, where the reported revenue of $15.852 Billion surpassed the expected value of $14.762 Billion by 7.38%. In comparison, the reported earnings of $0.68 per share exceeded the estimated $0.463 per share by 49.97%. This positive earnings report caused the GE stock to jump nearly 7% around earnings.
The EPS fell by 12.82% as compared to the previous quarter, while revenue jumped by 18.19%. The subsequent earning will be reported on October 24, 2023, where the revenue should be around $15.403 Billion and EPS shall be $0.561. The operating expenses swelled 3.46% to $2.398 Billion.
General Electric (GE Stock) – Candle Exploration
GE stock price action has been climbing steadily since January 2023 as denoted by the ascending trendline. Even if the current price is below the trendline, the 50EMA should support increasing the price. The immediate support would reflect a further drop at $106.86 before entering the buying zone.
If the GE price crosses immediate resistance at $115.85, it will be strong enough to enter the selling zone. Experts say the next bull run will be seen after the price crosses $120.00. The price has to sustain above $115 for a considerable period.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/08/19/general-electric-ge-stock-to-breach-120-00-barrier-but-when/