GE Aerospace is Wednesday's IBD Stock Of The Day, as the "new" pure-play aerospace S&P 500 component is honing in on an early entry for aggressive investors atop a 60% run so far this year.
The aerospace and defense pure-play company emerged from General Electric's big, long-term breakup, after the spinouts of GE Vernova and GE HealthCare Technologies. GE Aerospace kept the GE ticker symbol.
Before the spinouts, General Electric shed a number of assets and operations over a series of years, from lighting to locomotives. In November 2017, GE began signaling the breakup process amid financial troubles.
GE Aerospace, once called GE's "crown jewel," makes jet engines and aviation systems for plane-makers like Boeing, as well as the military. It also runs a lucrative aftermarket business for engine repair and maintenance.
GE Aerospace's jet-engine rivals include RTX and Rolls-Royce. It also competes with companies such as Honeywell in aviation systems.
The company reports second-quarter earnings and revenue on July 23 before the market opens. Analysts predict EPS coming in at 98 cents with revenue totaling $8.53 billion.
The Company's Outlook
For fiscal 2024, GE Aerospace expects adjusted earnings to range from $3.80 to $4.05 per share with free cash flow exceeding $5 billion. During its Q1 report in April, GE raised its total operating profit outlook to range from $6.2 billion to $6.6 billion, from the prior guidance of $6 billion to $6.5 billion.
Is GE Stock A Buy Or A Sell Right Now?
Analysts forecast a 2024 earnings increase to $4.07 per share on $36.59 billion in revenue, according to FactSet.
The company expects commercial engines and services revenue to grow in the mid-to-high teens. GE lifted its operating profit outlook for the business segment by $100 million, to range from $6.1 billion to $6.4 billion.
Defense and propulsion technologies revenue is seen rising in the mid- to high-single-digits. GE expects its defense operating profit between $1 billion and $1.3 billion.
In early March, GE Aerospace pared its 2025 revenue outlook to low double-digit growth, which is the lower end of its prior range of up to double-digit sales growth in the high teens. The company forecasts an operating profit of about $7.3 billion as the midpoint for the year. The outfit aims to reach an operating profit of $10 billion in 2028.
GE Stock Performance
Shares of GE stock edged up 1.6% to 165.68 during market action on Wednesday. GE stock is building a flat base pattern with an official 170.80 buy point, according to MarketSurge pattern recognition.
The stock formed that base above firm support at its 10-week moving average. That gives the base an additional indicator of strength.
For aggressive investors, there appears to be an early entry, with GE stock moving above Tuesday's high of 165.58 and breaking a down-sloping trendline.
Year to date, the S&P 500 stock has surged 60%. It has more than doubled over the past year. On May 7, GE stock hit its best level in 15 years, but has pulled back a bit.
GE stock has a solid 96 Composite Rating out of a best-possible 99. The S&P 500 component also has a 96 Relative Strength Rating and a 77 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
YOU MAY ALSO LIKE:
Is Tesla Stock A Buy Or A Sell?
Get Full Access To IBD Stock Lists And Ratings
Learning How To Pick Great Stocks? Read Investor's Corner
Is Rivian A Buy Right Now After It Launched Its New Product Line?
Futures: Inflation Report Due; Market Flashes Biggest Warning In A Year
