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Evendale, Ohio-based GE Aerospace (GE) designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. With a market cap of $222.1 billion, GE Aerospace operates through Commercial Engines and Services, and Defense and Propulsion Technologies segments.
Companies worth $200 billion or more are generally described as "mega-cap stocks," GE Aerospace fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the aerospace and defense industry. GE Aerospace employs nearly 52,000 people and has an installed base of more than 44,000 commercial and over 26,000 military aircraft engines.
GE stock touched its all-time high of $212.19 on Feb. 18 and is currently trading 2.5% below that peak. GE has soared 14.6% over the past three months, significantly outperforming the S&P 500 Index’s ($SPX) 74 basis point decline during the same time frame.
Over the longer term, GE’s performance looks even more impressive. GE has soared 66.3% over the past 52 weeks and 20.4% over the past six months, outpacing SPX’s 17.5% gains over the past year and 6.5% returns over the past six months.
To confirm the bullish trend, GE has remained mostly above its 200-day moving average over the past year with slight fluctuations and consistently above its 50-day moving average since mid-January.
GE Aerospace stock surged 6.6% after the release of its impressive Q4 results on Jan. 23. The company had a solid finish of the year, its quarterly revenues surged 14.3% year-over-year to $10.8 billion, while its adjusted revenues increased 15.6% year-over-year to $9.9 billion, exceeding the Street’s expectations by approximately 4%. Furthermore, the company observed a massive improvement in profitability, its non-GAAP operating margins expanded 450 basis points compared to the year-ago quarter to 20.1% leading to a staggering 48.9% year-over-year growth in non-GAAP operating profit to nearly $2 billion. Moreover, its adjusted EPS of $1.32 surpassed the consensus estimates by 28.2%, boosting investor confidence.
Meanwhile, GE Aerospace has notably outperformed its competitor RTX Corporation’s (RTX) 47.9% surge over the past year and 10.1% gains over the past six months.
Among the 20 analysts covering the GE stock, the consensus rating is a “Strong Buy.” Its mean price target of $230.63 represents an 11.4% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
