Why General Electric is still a favorite stock?

General Electric

General Electric company (GE) is a global digital industrial company. The Company’s products and services range from aircraft engines, power generation, oil and gas production equipment to medical imaging, financing and industrial products. The company has market capital of $71.4 billion and increase of $4.3 billion dollar on Friday June, 05, 2020 due to surprise job numbers. The stock has 52-week low of $7.17 and high $13.26. The stock is trading $8.16 per share on NYSE.

General Electric is expected to take big hit due to negative cash flow in the second quarter of 2020. Aerospace business is down 50-60 percent, a big portion of the General Electric. General Electric in recent months have sold several assets and paying down debts including the lightbulb divestiture to Savant. Even the job numbers are getting better, but GE is getting prepared for an unexpected inflation or downturn. GE has beta of 1.3 which indicates been more volatile than overall stock market. Analyst have average target price of $8.66 for the stock an upside of 6.4 percent.

Today June 5, 2020, Citi Group analyst Andrew Kaplowitz kept a buy rating on GE with an $8 price target. This is the most recent analyst commentary. GE has benefited from improving relations of USA with China and it is expected to improve as Donald Trump soften his critics on china and express hope of making the deal happen.

General Electric has 62.42 percent institutional ownership and short interest of 1.71 percent. The company will release next earnings report on July 29, 2020. Looking at insider transaction, Garden Edward recently sold worth of $31.7 million shares with an average price of $6.46.

Even though GE shares have lost almost 70 percent value over the last five years due to debt accumulation and acquisitions. The company is under new management and working on a multiyear turnaround.

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