General Electric $GE At 2 Year Lows, What To Look For in Earnings

General Electric stock is moving the opposite to the general market, $GE is at 2 year lows as the S&P and Dow trade at all time highs. $GE reports on Friday October 20 before the market opens to help us gauge the econmy’s strength.

General Electric stock is moving the opposite to the general market, $GE is at 2 year lows as the S&P and Dow trade at all time highs. $GE reports on Friday October 20 before the market opens to help us gauge the econmy’s strength. The major banks reported last week. Caution hangs over the stock as new CEO John Flannery took over in August and has been putting his own stamp with executive and boardroom changes. He also has been cutting operational costs and absorbing the Baker Hughes merger. Analysts are concerned the company is out of step and that its dividend is vulnerable

GE At 2 Year Lows After Trend Line Break

GE Monthly 10 15 17

GE Consensus Forecast

Analysts expect EPS to improve 56%  to 50 cents with revenue rising 9% to $31.92 billion.

If congress can pass regulatory rollbacks after the GOP’s unsuccessful attempt to replace the Affordable Care Act the company as much to gain was the theory but the stock price shows little faith.

JPMorgan’s Stephen Tusa Bearish Note on GE

Reaffirming underweight on GE stock.

After the $GE leadership moves JPMorgan issues a negative note on the company. They wrote:

“Core fundamental challenges are worse than consensus is currently discounting,”

“Not only is the baseline of the now hotly debated ‘reset’ likely lower, but what we think investors are ignoring is the trend line on the businesses, some of which have secular issues (i.e. implications for multiple), a hole that is unlikely to be dug out of with simple cost cuts alone,” JPMorgan continued.

Note CEO John Flannery has signaled that a current EPS goal of $2 for 2018 may be too high.

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