General Electric Co. (NYSE: GE) is a highly diversified industrial technology and financial services company. With its involvement in wind turbine manufacturing and other clean energy projects, it’s a stock for alternative investors to consider. GE has momentum this week and the financials are likely to improve in the coming months. See why this is a bargain pick to consider today.
General Electric is up almost 12% over the previous five days, thanks to increased confidence for a financial turnaround. The company announced this week that it expects positive cash flow by the end of the year. It expects cash outflow of up to $656 million in the third quarter, but it will follow this with an inflow of around $1.17 billion in the final quarter.
The previous quarter was difficult for the company, with the Coronavirus Pandemic affecting its aviation business segments. Leadership believes that the worst is over, and it is now starting to see recovery in its core markets. Capital spending has been slashed to offset losses during this difficult period. Up to $2 billion in costs have been cut so far. Positive cash flow is also expected in 2021, leaving the potential for a strong earnings upside.
There’s an average price target of $8.18 on this stock today. Bargain investors thinking long-term will find this to be a valuable industrial stock to hold.
- 1 Year Price Growth: -28.34%
- YTD Price Growth: -39.52%
- 3 Month Price Growth: -7.28%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.