Invest in 60's | GE shares +70% this year and why I see more upside

Everyone is talking about big tech earnings, but here is a stock that Jessica Amir, moomoo's market strategist, is watching.

General Electric ($GE) is a global diversified company. Its shares are up 70% this year. It’s not just a manufacturer of health equipment (making up 25% of revenue) but it makes aviation engines and equipment (accounting for ~35% of revenue).

It’s also in FUTURE industries as well. It generates gas, steam and nuclear power and produces and supplies hydro and wind energy solutions (which make up 40% of group revenue).

It’s these types of diversified businesses that are held by institutions and banks as they historically weather storms as they have. And because of its diversified nature, it sees buying every quarter. GE ($GE) is in a wide range of ETF’s including Invesco’s Defence ETF PPA, SPDR’s Industrial ETF XLI and the climate change ETF NETZ.

Their orders are already up this month. GE ($GE) Aviation sold 36 engines to Air Canada for the 787 airline. Plus, GE ($GE) Aerospace’s new T-901 Engines will be used in the US Army’s improved turbine engine program, for its Black Hawk, Apache and Future Attack Reconnaissance Aircraft. The new engine provides 50% more power, and reduces life cycle costs.

But remember, long term earnings drive share price growth, so what else is ahead? Market (consensus) forecasts suggest earnings and profit growth, and EPS to not be as strong in 2023 as in 2022 – as clean energy demand softened, but defence and health care should support earnings.

All in all, overall group financials should strengthen from 2024-2026.

Original post reference: https://www.moomoo.com/community/feed/111264477675526