Core Viewpoint - General Electric (GE) stock has experienced significant growth, more than doubling from approximately $90 per share in September 2023 to $190 currently, driven by strong business fundamentals and growth in Aerospace revenues [1] Financial Performance - GE's net income saw a turnaround in fiscal 2023, increasing by approximately 45% after years of restructuring, with expectations for earnings growth exceeding 40% annually in the coming years [2] - Revenue growth combined with margin expansion could lead to a 40% increase in net earnings over the next few years, potentially allowing earnings to double [4] Stock Valuation and Potential - At current price levels, GE stock appears fairly valued, but there is potential for the stock to rally another 2x in the next few years, with projections suggesting it could reach nearly $400 per share [2] - If earnings double, the price-to-earnings (P/E) multiple could remain at around 45x, rather than shrinking, supporting the possibility of a significant stock price increase [4] Market Comparison - GE stock performance has been volatile compared to the S&P 500, with returns of 10% in 2021, -11% in 2022, and 94% in 2023, indicating challenges in consistently outperforming the index [3] - The Trefis High Quality Portfolio has outperformed the S&P 500 consistently, suggesting that GE may face challenges in maintaining strong performance in the current uncertain macroeconomic environment [3] Future Outlook - The timeline for GE stock potentially doubling could be within the next twelve months, contingent on continued revenue and earnings expansion with improving margins [5]
Can GE Stock Double Again?