GE one of the finest companies representing Americal instrutrial prowess and technological marvel. However, in the last 52 weeks, the company's performance has be too poor to garner any positive mention. The bearish sentiment resulted primarily from GE Capital and GE Power. On the other hand, GE still has many crown jewels such as GE Aviation, GE HealthCare.
My analysis indicates, the worst may be over for GE and as long as the management avoids short sighted decisions (that may boost profit now but will hurt outlook later). I think in the near term the price is expected to climb towards the $15-18 range. Long term however, I see GE as a $25+ stock. Although, the dividend has been cut and the cash flow does not look great (along with an underfunded pension plan), GE does have the potential to climb back up into the SP500's top performers.
GE has always been an innovator. As long as that culture is imbued within the employees and managements takes steps to retain key employees, I see the outlook as very positive. The worst case scenario for GE would be another recession as the demand for industrial products can drop significantly leading to lower revenues. However, I think at this point, it is an excellent opportunity to buy into GE.
My analysis indicates, the worst may be over for GE and as long as the management avoids short sighted decisions (that may boost profit now but will hurt outlook later). I think in the near term the price is expected to climb towards the $15-18 range. Long term however, I see GE as a $25+ stock. Although, the dividend has been cut and the cash flow does not look great (along with an underfunded pension plan), GE does have the potential to climb back up into the SP500's top performers.
GE has always been an innovator. As long as that culture is imbued within the employees and managements takes steps to retain key employees, I see the outlook as very positive. The worst case scenario for GE would be another recession as the demand for industrial products can drop significantly leading to lower revenues. However, I think at this point, it is an excellent opportunity to buy into GE.