Is General Electric Stock Growling for a Strong Buy?

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?