There were predictions earlier this year that General Electric Co. (NYSE: GE) would recover from its slump, and the prediction has proven to be solid when looking at recent data. Over the last month, the stock has climbed 25.82%, breaking slightly outside of the $10 barrier, but remaining a bargain compared to other energy stocks.
General Electric is fully integrated in the energy industry, with involvement in generation, transmission, distribution, and control. It is a major supplier to the clean energy industry through its turbine, wind, and renewable energy divisions.
The company has shed some of its loss-making divisions in recent years, and it is now focusing on a long term restructuring that is expected to increase profitability and revenue. In the third quarter, the company decreased its debt from $109.85 billion to $96.41 billion. Debt is now below the company’s market capitalization. Beyond the clean energy market, the company also produces aircraft engines. It is a major supplier to Boeing, and it stands to see a significant boost in revenue when the grounded 737 MAX jets are re-entered into service either at the end of 2019 or the first quarter of 2020.
General Electric is unique among bargain stocks because it’s a major U.S. corporation with a long history in the stock market. This should be seen as an advantage. The company has the leadership and the infrastructure to climb back up in the market. Recent performance shows that there’s still plenty of potential, and alternative investors can get in while shares are affordable.
- 1 Year Price Growth: 81%
- YTD Price Growth: 04%
- 3 Month Price Growth: 93%
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.