| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
| $303.87 | 320.53B | 7.48 | 0.47% | Industrials | 53,000 | 15 hours ago |
General Electric (NYSE: GE) is making waves again, positioning itself as a potential market leader for the rest of 2013. If there was ever a time to keep a close eye on GE, that time is now. Despite its massive size, GE continues to surprise the market with its ability to drive innovation and growth. Recent data suggest that GE is gearing up for a spectacular bull run, making it an exciting prospect for both growth and income-oriented investors.
After its financial restructuring post-crisis, GE has been on a steady path of recovery, exemplified by its earnings consistently meeting or exceeding analysts’ expectations. With a tantalizing 3.2% dividend yield, GE is not just another stock; it’s potentially a goldmine. This dividend yield makes it an attractive proposition for those seeking steady income, alongside substantial gains due to market movements.
Editor's Note: Analysis and insight for this article were originally sourced from our friends at InvestorPlace
While the financial crisis dealt a heavy blow to many companies, GE took it as an opportunity to revamp and emerge stronger. The international conglomerate has improved its fundamental situation considerably, focusing on core businesses and shedding non-essential assets. This has allowed GE to stabilize and begin growing once more, now meeting or surpassing earnings expectations consistently over the past year.
However, the technical indicators are perhaps the most enticing aspect of GE‘s story right now. Over the past three months, GE shares have lagged behind the S&P 500, appreciating by just 1.8% compared to the S&P 500’s 9.3% return. This lagging performance is deceptive; it sets the stage for a significant breakout. Earlier this month, GE tested its 200-day moving average after its earnings announcement, which was positive on both the top and bottom lines. Less than a month later, GE is making a robust charge back to its March highs, dangerously close to breaking the crucial $24 resistance level.
The market’s pessimism towards GE further sweetens the deal. With 92 million shares shorted, GE is the third-most shorted stock in the S&P 100. This level of short interest is reminiscent of August 2012, which led to a 15% rally fueled by short covering. A similar situation could unfold now, turning the pessimism of short sellers into a potent driving force for a breakout rally.
For those keeping a vigil on GE‘s stock movement, the $24 resistance level is critical. Breaking through this level could be the harbinger of a significant rally, with technical indicators projecting a price target of around $27 or higher by the end of summer.
In broader market terms, GE’s recent appreciation of 1.8% pales in comparison to the S&P 500’s 9.3% return. This underperformance, however, sets the stage for a resurgence, a classic case of a stock preparing for a breakout when most investors least expect it. A break above the $24 level could trigger a bandwagon effect, as bearish investors capitulate and switch to a bullish perspective, further propelling GE‘s stock higher.
Adding another layer of allure to GE’s stock is its 3.2% dividend yield. This attractive yield makes GE a hybrid stock, appealing to both growth investors looking for an uptick in stock price and income-focused investors wanting a steady dividend stream. In an era where reliable dividend yields are a treasure, GE’s stable and attractive dividend provides a solid foundation for long-term investment.
Income-focused investors can take comfort in GE’s robust financial health, ensuring that the dividends are both secure and sustaining. In the current market scenario, where stock prices are poised for a breakout, having a reliable dividend doubles the attractiveness of GE’s stock.
Based on the insights from various financial analysts and platforms, General Electric (GE) holds a favorable position in their outlooks:
| Metric | Value |
|---|---|
| Consensus Rating | Overweight |
| Average Price Target | $13.44 |
| Potential Gain | 24.1% |
| Number of Ratings | 17 |
Summary of Analysts’ Outlook:
Analysts have a generally positive outlook on General Electric, with a consensus rating of Overweight. The average price target of $13.44 suggests a potential gain of 24.1% from the current price. While there are some Hold and Sell ratings, the majority of analysts recommend buying or accumulating GE stock.
Sources:
- Yahoo Finance: General Electric Company (GE) Analyst Ratings
- TipRanks: General Electric Company (GE) Analyst Forecasts
- MarketWatch: General Electric Co. Analyst Estimates
- CNN Business: General Electric Company (GE) Analyst Ratings
Please note that analyst ratings and forecasts can change over time and may not reflect the current market situation. It’s always a good idea to do your own research and consider multiple sources before making any investment decisions.
As the summer months approach, General Electric is one stock that should be on every investor’s radar. With a unique combination of technical setups, substantial short interest, and fundamental improvements, GE is poised to lead the market higher. Watching the stock’s performance around the $24 level will be crucial; a break here could signal the start of a significant rally.
GE‘s past resilience and future potential, combined with a 3.2% dividend yield, positions it as a standout opportunity in 2013. As short sellers begin to cover, driven by a bandwagon effect and positive technical indicators, traders and investors have the chance to capitalize on what may become one of the most exciting stock movements of the summer.