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- GE Aerospace, a recent spin-off from General Electric, is experiencing a decade-high performance.
- The company, which specializes in jet engines and aviation systems, is currently not within the buy range despite its impressive performance.
- “GE Aerospace is far extended from a 132.50 buy point off a three-weeks-tight pattern. That means shares are not within buy range,” according to MarketSurge pattern recognition.
GE Aerospace continues to soar in the stock market, but is it the right time to invest? This article delves into the company’s performance, earnings, and future prospects.
GE Aerospace: A New Chapter for General Electric
Following the split of General Electric into GE Aerospace and GE Vernova on April 2, GE Aerospace has kept the GE stock ticker. The company, which manufactures jet engines and aviation systems, has seen its stock rise by 80% since a November 2023 breakout.
Impressive Market Performance
Year to date, the new aerospace stock has soared 67%. It has more than doubled in the past year, up about 111%. The industrial giant earns an IBD Composite Rating of 96 out of 99, according to the IBD Stock Checkup tool.
Earnings and Future Prospects
GE earnings struggled during the pandemic, but profits boomed in 2023 and are expected to remain strong through 2025. In Q1 2024, GE’s earnings skyrocketed 204%, topping forecasts, with revenue gaining 11%. The company also reported a 34% increase in total orders during the quarter to $11 billion.
GE Aerospace: The ‘Crown Jewel’
Once referred to as GE’s “crown jewel”, GE Aerospace is benefiting from the travel rebound post-pandemic and growing defense orders. However, the aviation business is highly cyclical and risks remain across the global economy.
Is GE Stock A Buy?
Despite the impressive performance, GE stock is not a buy right now. The company is far out of range from a follow-on buying opportunity. However, shares have outperformed since mid-2022 as General Electric revived growth and began to transform into an aerospace-focused company.
Conclusion
While GE Aerospace’s performance is impressive, it’s important for potential investors to consider the cyclical nature of the aviation business and the current global economic risks. For now, GE stock is not a buy.
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