GE Aerospace (GE) closed the most recent trading day at $320.84, moving +1.14% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 0.91%.
Shares of the industrial conglomerate have appreciated by 11.86% over the course of the past month, outperforming the Aerospace sector's gain of 6.75%, and the S&P 500's gain of 4.96%.
The investment community will be closely monitoring the performance of GE Aerospace in its forthcoming earnings report. The company is predicted to post an EPS of $1.87, indicating a 12.65% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $11.84 billion, up 16.64% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.46 per share and revenue of $48.38 billion. These totals would mark changes of +17.11% and +14.3%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for GE Aerospace. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.19% higher. As of now, GE Aerospace holds a Zacks Rank of #3 (Hold).
In the context of valuation, GE Aerospace is at present trading with a Forward P/E ratio of 42.5. This signifies a premium in comparison to the average Forward P/E of 22.74 for its industry.
Also, we should mention that GE has a PEG ratio of 2.95. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.56.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 107, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).