Is General Electric Stock Growling for a Strong Buy?

February 19, 2013

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E = Equity to Debt Ratio Is Weak

The debt-to-equity ratio for GE is weak, but the company has been moving in the right direction when it comes to fiscal responsibility.

	Debt-To-Equity	Cash	Long-Term Debt
GE	3.23	$125.70 Billion	$414.10 Billion
HON	0.57	$5.26 Billion	$7.50 Billion
EMR	0.51	$2.53 Billion	$5.45 Billion

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T = Technicals on the Stock Chart Are Strong

GE has outperformed Honeywell International Inc. (NYSE:HON) and Emerson Electric Co. (NYSE:EMR) over the past year. GE also offers the most yield at 3.30 percent. Honeywell yields 2.30 percent, and Emerson Electric yields 2.80 percent.

	1 Month	Year-To-Date	1 Year	3 Year
GE	5.67%	10.96%	24.98%	57.87%
HON	3.39%	10.46%	19.74%	89.02%
EMR	5.04%	10.85%	16.78%	33.09%

At $23.29, GE is currently trading above all its averages.

50-Day SMA	21.72
100-Day SMA	21.69
200-Day SMA	20.92

E = Earnings Have Been Steady

Earnings have been steady throughout the years. Revenue hasn’t been as impressive, but the top-line does epitomize steadiness.

	2008	2009	2010	2011	2012
Revenue ($)in billions	181.58	154.44	149.54	147.30	147.36
Diluted EPS ($)	1.72	1.01	1.06	1.23	1.29

When we look at the last quarter on a year-over-year basis, we see an increase in revenue and earnings. This is always a good sign.

	12/2011	3/2012	6/2012	9/2012	12/2012
Revenue ($)in billions	37.98	35.18	36.50	36.35	39.33
Diluted EPS ($)	0.35	0.29	0.29	0.33	0.38

Let’s take a look at the next page for the Trends and Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY?

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