In the latest trading session, GE Aerospace (GE) closed at $322.04, marking a -1.82% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.3%. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq added 0.86%.
The stock of industrial conglomerate has risen by 10.38% in the past month, leading the Aerospace sector's gain of 5.67% and the S&P 500's gain of 1.92%.
The investment community will be closely monitoring the performance of GE Aerospace in its forthcoming earnings report. The company is expected to report EPS of $1.87, up 12.65% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.84 billion, up 16.64% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.48 per share and revenue of $48.41 billion, which would represent changes of +17.43% and +14.38%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for GE Aerospace. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.2% increase. GE Aerospace is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, GE Aerospace currently has a Forward P/E ratio of 43.86. This indicates a premium in contrast to its industry's Forward P/E of 22.6.
One should further note that GE currently holds a PEG ratio of 2.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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).