Today we're going to take a look at the well-established General Electric Company (NYSE:GE). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. But what if there is still an opportunity to buy? Let's take a look at General Electric's outlook and value based on the most recent financial data to see if the opportunity still exists. See our latest analysis for General Electric Great news for investors - General Electric is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $154.61, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because General Electric's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for General Electric, at least in the near future. Are you a shareholder? Although GE is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to GE, or whether diversifying into another stock may be a better move for your total risk and return. Are you a potential investor? If you've been keeping an eye on GE for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For instance, we've identified 3 warning signs for General Electric (1 can't be ignored) you should be familiar with. If you are no longer interested in General Electric, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Leave a Comment