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Valued at a market cap of $219.6 billion, GE Aerospace (GE) designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. The Evendale, Ohio-based company also offers aftermarket services to support its products.
Shares of this aerospace company have significantly outpaced the broader market over the past 52 weeks. GE has rallied 87.2% over this time frame, while the broader S&P 500 Index ($SPX) has gained 22.8%. Moreover, on a YTD basis, the stock is up a notable 23.5%, compared to SPX’s just 3.4% rise.
Narrowing the focus, GE has also outshined the Industrial Select Sector SPDR Fund’s (XLI) 18.8% return over the past 52 weeks and a 4.5% gain on a YTD basis.
On Jan. 23, shares of GE soared 6.6% after its Q4 earnings release as the company delivered significantly better-than-expected Q4 adjusted earnings of $1.32 per share and revenues of $10.8 billion. Moreover, the top line climbed 14% from the year-ago quarter, while the bottom line advanced by a massive 103% year-over-year. The company’s robust growth in its commercial engines & services revenues, coupled with a notable 450 bps adjusted operating margin expansion, reflecting GE’s effective cost management, aided the results. Total orders increased 46% year-over-year to $15.5 billion, adding to the uptrend. Additionally, the outlook for 2025 was just as promising. The company expects low double-digit revenue growth and EPS between $5.10 – $5.45.
For the current fiscal year, ending in December, analysts expect GE’s EPS to grow 17.2% year over year to $5.39. The company’s earnings surprise history is promising. It surpassed the Wall Street estimates in each of the last four quarters.
Among the 19 analysts covering the stock, the consensus rating is a “Strong Buy,” which is based on 15 “Strong Buy,” one “Moderate Buy,” and three “Hold” ratings.
On Jan. 29, Bernstein analysts maintained an “Outperform” rating on GE and raised its price target to $232, which indicates a 12.6% potential upside from the current levels.
The mean price target of $224.06 represents an 8.7% upside from GE’s current price levels, while the Street-high price target of $261 suggests an upside potential of 26.7%.
