General Electric is one of those iconic brands that's been around forever (since 1892) and has infiltrated every aspect of all of our lives. Yet when we think about GE we always think of one of the simplest of all things - the lowly light bulb. It's one of Thomas Edison's original invention.
Today, so many inventions and ideas have come out of the research laboratories and factories of GE that we now envision a cartoon individual coming to the realization of an idea as having a light bulb coming on over his head!
- GE is one of the original members of the Charles Dow averages in 1896.
- GE survived the subprime crisis of 2008-2009 and now revenue and earnings estimates are rapidly increasing.
- GE pays a dividend in excess of 3.30% and has an estimated stock price gain of 30+% by the end of 2015.
General Electric Co. (GE) operates as an infrastructure and financial services company worldwide. The company’'s Power and Water segment provides turbines, nuclear reactors, generators, combined cycle systems, controls, and related services; wind turbines; and water treatment services and equipment. Its Oil and Gas segment offers surface and subsea drilling and production systems, equipment for floating production platforms, compressors, turbines, turboexpanders, high pressure reactors, industrial power generation, and auxiliary equipment. The company'’s Energy Management segment provides electrical distribution and control products, lighting and power panels, switch gears and circuit breakers; engineering, inspection, mechanical, and emergency services; motor, drives, and control technologies; and plant automation, hardware, software, and embedded computing systems. Its Aviation segment offers jet engines, aerospace systems and equipment, and related replacement parts for military and commercial aircrafts; and maintenance, component repair, and overhaul services. The company'’s Healthcare segment offers medical imaging and information technologies, medical diagnostics, and patient monitoring systems; and disease research, drug discovery, biopharmaceutical manufacturing services, and remote diagnostic and repair services. Its Transportation segment provides freight and passenger locomotives; diesel engines for rail, marine, and stationary power applications; railway signaling and communications systems; underground mining equipment; motorized drive systems; information technology solutions; and replacement parts. The company'’s Appliances and Lighting segment provides home appliances and lighting products. Its GE Capital segment offers commercial loans and leases, fleet management, financial programs, credit cards, personal loans, and other financial services. The company was founded in 1892 and is headquartered in Fairfield, Connecticut. (Daily Chart) (Weekly Chart)
8 July 2014
1yr Target $28.90
1yr Cap Gain 9.59%
1yr Tot Return 12.93%
Market Cap $269.35 Bil
3yr EarnGR 6.14%
4yr EarnGR 5.49%
3yr DivGR 19.53%
4yr DivGR 6.67%
Payout Ratio 61.97%
EPS (ttm) $1.42
EPS next yr $1.82
The company trades at a current P/E ratio of 18.92 and has a forward P/E ratio of only 14.49 based on a 2015 earnings estimate of $1.82. This reduction in the P/E ratio is testament to the excellent estimated increase in earnings in 2015. The company also has a solid balance sheet with $88.56 billion in cash to use for current operations and any possible future acquisitions.
The Price Chart
GE has shown both resistance and support at the $26.20 level. If it falls through that level, the next support comes in near the $24.80 level. I feel buying at the current asking price is a good price to start accumulating this stock. Any pullback below the current price would be an excellent price for such a great American company. I intend to monitor this security with the intent of accumulating a position. It may well become a core holding for my portfolio.