General Electric (GE) Stock

GE Aerospace has started off very well as a separate company. The market has reacted positively, giving it a high rating due to its strong performance and the potential for steady income from services linked to its aircraft engines used by airlines.

On Thursday, December 19, 2024, the S&P 500 fell by 0.1% as stocks had a hard time bouncing back from the previous day's decline, even with positive news about economic growth.

GE Aerospace's stock has dropped almost 9% because of worries about possible government budget cuts, although the company is not heavily involved in defense. Estimates for EBITDA have been slightly lowered, but annual growth is still predicted to be 8.3%, which is better than previous forecasts. While free cash flow predictions have been adjusted down a bit, they still suggest good returns for shareholders through dividends and buying back shares.

EVENDALE, Ohio--(BUSINESS WIRE)--The Board of Directors of GE Aerospace (NYSE: GE) has announced a dividend of $0.28 per share for its common stock. This dividend will be paid on January 27, 2025, to shareholders who are on record by the end of business on December 27, 2024, which is also the ex-dividend date. GE Aerospace is a leading company in aerospace propulsion, services, and systems, with around 44,000 commercial units in operation.

GE Vernova's valuation is very high, trading at around three times its revenue, even though its revenue growth is modest and profit margins are low, which makes it seem overvalued compared to its competitors. The wind turbine division is having trouble making profits and is facing tough competition, especially from cheaper Chinese manufacturers, which raises concerns about future profit margins. While there are positive signs in the medium term due to strong orders and a growing backlog, particularly in gas power for AI data centers, there are expected challenges in the long run.

Asian shares rose on Thursday following Wall Street's positive performance, as new inflation data suggested that the Federal Reserve might provide more support for the economy. The government revealed plans to roll out trial private pension programs nationwide starting December 15. In Tokyo, the Nikkei 225 index increased by 1.3% to reach 39,897.13, driven by strong demand for technology stocks.

GE Vernova is holding an analyst event on Tuesday evening. One potential holiday surprise for investors might be a dividend.

The company we used to call "General Electric" has changed a lot in the last few years. After separating GE HealthCare and then GE Vernova, it has transformed into a new company called GE Aerospace, which focuses on making airplane engines for major companies like Boeing and Airbus, as well as for the U.S. military.

TD Cowen analyst Marc Bianchi has started following the company, giving it a Buy rating and setting a price target of $400.