Today we will talk about General Electric, whose stock has been one of the growth leaders over the past 3 months.
Today we will talk about General Electric, whose stock has been one of the growth leaders over the past 3 months.
During this period, General Electric stock has risen by +49.2%. At the same time, the industrial sector, to which the company belongs, grew by +10.1%, and the S&P 500 index by +7.2%. As you can see, General Electric shares show better returns than the sector average.
General Electric is a global leader in the development and production of aircraft engines. The company services about 70k engines for private and government customers in 160 countries, such as Airbus and Boeing. The company has 59 plants in the US and 102 in other countries.
The company operates in the industrial conglomerates industry. It was founded in 1892. In 1896, it was listed on the NYSE, and in 1957 it was included in the S&P 500 index. For the past 6 years, the company has been led by Lawrence Culp and a team of experienced managers.
The main competitors of General Electric are Honeywell International, TransDigm Group and Roper Technologies. As we can see from the table above, it is ahead of its competitors in terms of capitalization, as the company has a number of competitive advantages.
General Electric’s strengths are based on its market positioning. About 50% of all Boeing 777 aircraft engines are manufactured and serviced by the company. The company also supplies engines to Boeing’s competitor Airbus, namely for the new A320neo model and other aircraft. One of the most promising segments is defense contracts, which has grown by +14.6% over the past 5 years. And in October 2023, the first 2 T901 engines for a new generation fighter prototype were accepted by the US Department of Defense.
General Electric published its latest report on January 23. 74% of the revenue structure is made up of manufacturing costs and 26% of gross revenue. Over the past quarter, the company made a profit of $1.5B. Its market capitalization is now $172B.
* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
