General Electric (GE) Stock

GE Aerospace's impressive earnings in the fourth quarter of 2024 and high demand in the aviation sector indicate a bright outlook for 2025, with expected profit growth in the double digits. Supportive business policies from the Trump Administration and strong economic growth in the U.S. may enhance GE Aerospace's financial results. The company predicts free cash flow between $6.3 and $6.8 billion and earnings of $6.37 per share for 2025, which represents an 18% increase compared to the previous year.

Investors in GE Aerospace should pay attention to several important metrics in 2025, but the most crucial one is the operating margin for its commercial engines and services (CES) division.

The latest earnings report for the fourth quarter of 2024 from GE Aerospace (GE -0.97%) exceeded expectations. However, if you're considering buying or keeping the stock, you might be more focused on how the company will perform in a year rather than just its current situation.

General Electric has undergone significant changes and is now called GE Aerospace. In fact, 2024 marks the first year after a major transformation of the company.

After exceeding Q4 earnings expectations last Thursday, it might be a good time to consider investing in GE Aerospace (GE) stock for potential growth.

GE Aerospace has been upgraded to a 'Strong Buy' rating, with a target price of $250 per share, thanks to strong order growth and positive forecasts for FY25. Major investments in the LEAP engine program and maintenance, repair, and overhaul facilities are crucial for ongoing growth in both commercial and defense sectors. Revenue for FY25 is expected to increase by 12.5%, mainly due to the Commercial Engines & Services and Defense & Propulsion Technologies divisions.

GE Aerospace's stock rose by 6.6% to more than $200, exceeding the $184 price target and achieving a 21.1% return, which is much better than the S&P 500. In the fourth quarter, the company reported a 16% increase in revenue, a 49% rise in operating profit, and doubled earnings per share, along with strong free cash flow and order growth. Looking ahead, GE Aerospace expects low double-digit growth in 2025, particularly in the CES and DPT segments, and has plans for stock buybacks and increasing dividends.

General Electric Company (NYSE:GE) will hold its Q4 2024 Results Conference Call on January 23, 2025, at 7:30 AM ET. The call will feature company leaders, including Blaire Shoor, Larry Culp, and Rahul Ghai, along with analysts from various financial institutions. Currently, all participants are in listen-only mode.

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