A look as to why investing in the General Electric stock is a wise decision
General Electric Company (NYSE:GE) stock has been up 10% compared to the last month. This is mainly because of booming demand for Jet Engines and Wind Turbines.
In addition, GE is positive for year 2017, having announced 3-5% revenue gain in guidance. The company has posted optimistic outlook on the back of its oil & gas business stabilizing in the future, reaping massive profits.
The stock was raised at Stone Bridge Capital Management Inc. by 6.1% in the third quarter(3Q). The fund owns 280,696 shares of General Electric after purchasing additional 16,255 shares.
In addition, Cwm LLC increased its stake in the Company by 90.3% during 3Q. The firm owns 170,221 shares after purchasing additional 80,779 shares. The move is positive for investors in general going forward with the New Year.
The year 2016 has been fruitful for the company. Firstly, things started to work out when Haier agreed to purchase its low-margin consumer appliance division; the deal indicates that the company is able to find buyers even for its low-performing segments.
Secondly, GE managed to merge its oil & gas segment with the oil field services company Baker Hughes (NYSE:BHI). Following the deal’s close, it has now become the second largest player in the industry.
General Electric has announced plans to sell two of its industrial units in an attempt to raise $4 billion. The move is part of the company’s plans to cut down on operational expenses.
The GE stock traded at $31.60, plummeting 0.35% at the closing bell on Friday; it has gained 0.32% in pre-market today. Having a $278.58 billion market capitalization, General Electric has a price to earnings (P/E) ratio of 32.07 with a massive 1.44% year-over-year (YoY) gain.