Does General Electric Support This Trend?
With shares of General Electric (NYSE:GE) trading around $25, is GE an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework.
T = Trends for a Stock’s Movement
General Electric is a diversified industrial, technology, and financial services company that operates worldwide. The products and services of the company range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing, and industrial products. General Electric’s segments are Energy Infrastructure, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital. General Electric is a leading provider of a wide range of products and many are essential in daily lives of consumers and companies around the world.
General Electric announced third-quarter 2013 operating earnings of $3.7 billion, or 36 cents per share, down 3 percent and flat respectively from the third quarter of 2012. “Our third-quarter results were very strong in an improving global business environment,” said GE Chairman and CEO Jeff Immelt. “Orders grew 19 percent with orders growth around the world. Total segment profit grew 12 percent, industrial margins grew 120 basis points in the quarter, and we are on track for planned margin expansion of 70 basis points for the year. GE Capital continues to perform well, and we finished the quarter with a Tier 1 common ratio of 11.3 percent, up 116 basis points.”
T = Technicals on the Stock Chart Are Strong
General Electric stock has seen higher highs and higher lows in the past several years. The stock is currently trading near highs for the year and looks poised to continue. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, General Electric is trading above its rising key averages, which signals neutral to bullish price action in the near term.