Read Vet67to82's blog in RSS
January 22, 2012
Share ThisGeneral Electric (GE) has a Zacks Rank of (3 - Hold) and an S&P Rank of 4 Stars (Buy). Regarding GE and GE Capital, I do see analysts making interesting observations followed with great analysis, yet missing the bigger picture related to GE's manufacturing side in relation to the global trials and tribulations.
In my own analyses, crude prices above $75 per barrel are substantially beneficial to GE's manufacturing arm. I am expecting greater demand for GE's natural gas turbines, upgrades to existing power production, as well as greater demand for GE's commercial "energy efficient" airplane engines ... etc. Ge's expanding backlog attests to that. These expectations of mine, lead me to believe GE will be able to beat, future earnings estimates as well as analyst re-assessment that the "reasonable" forward P/E was way too low. I LIKE analyst upgrades and upward revisions in earnings estimates.
( 1) GE has a PEG (next 5 years) ratio of 1.01 which I believe doesn't yet reflect growth to come.
( 2) GE has a one year estimated target of $21 +/-0.25 and an intrinsic value of $24.17 +/-0.25 ...
One other point, in the pieces of the pie being worth MORE than the current value ... and, if I may, I am somewhat "speculating", on GE eventually bringing a piece of its GE Capital to market in an IPO, followed by a sale or spin-off.
... What's GE worth then?
