Core Viewpoint - GE Aerospace has shown strong stock performance recently, with a +10.2% return over the past month, significantly outperforming the S&P 500's +0.5% and the Aerospace - Defense industry’s +5.6% [1] Earnings Estimates Revisions - GE is expected to report earnings of $1.45 per share for the current quarter, reflecting a year-over-year increase of +26.1%, with a recent upward revision of +6.2% in the Zacks Consensus Estimate [4] - For the current fiscal year, the consensus earnings estimate is $5.87, indicating a +27.6% change from the previous year, with a +6.5% revision over the last 30 days [4] - The next fiscal year's consensus earnings estimate stands at $6.92, showing a +17.9% increase from the prior year, with a +7.2% change recently [5] - The Zacks Rank for GE is 1 (Strong Buy), indicating a positive outlook based on earnings estimate revisions [6] Revenue Growth Forecast - The consensus sales estimate for GE in the current quarter is $10.28 billion, representing a year-over-year increase of +14.9% [10] - For the current fiscal year, the sales estimate is $40.38 billion, indicating a -4.4% change, while the next fiscal year is projected at $44.82 billion, reflecting a +11% change [10] Last Reported Results and Surprise History - In the last reported quarter, GE achieved revenues of $10.15 billion, a +23.4% year-over-year increase, and an EPS of $1.66 compared to $1.20 a year ago [11] - The company exceeded the Zacks Consensus Estimate for revenues by +5.11% and for EPS by +16.08% [11] - GE has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times during this period [12] Valuation - GE is graded F on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [16] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [14][15] Conclusion - The positive earnings revisions and strong Zacks Rank suggest that GE may outperform the broader market in the near term, despite its current premium valuation [17]
GE Aerospace (GE) Is a Trending Stock: Facts to Know Before Betting on It