General Electric Company (GE): Why You Should Avoid the Stock

General Electric (NYSE:GE) is taking a hit after a major management shakeup. The company’s long time CEO Jeff Immelt and CFO have stepped down. Deutsche Bank said earlier this year that GE’s dividends are unsustainable and the company will have to cut its yield sooner or later. General Electric is currently going through a major transition and it will take several years for the company to stabilize and get back its glory.

In fiscal 2012, GE’s revenue was $144.9 billion, while in 2016 the revenue plummeted to only $120 billion. Therefore, analysts think that for now investors should stay away from the stock to avoid losses.

For this year General Electric 's revenue will be around 125,19 billion USD. This is according to the average of the analysts' estimates. This is slightly more than 2016's revenue of 123,69 billion USD.

Historical revenues and results General Electric plus estimates 2017

stock analysis

The analysts expect for 2017 a net profit of 12,89 billion USD. For this year the majority of the analysts, consulted by press agency Thomson Reuters, expects a profit per share of 1,53 USD. Based on this the price/earnings-ratio is 15,27.

Huge dividend General Electric

For this year the analysts expect a dividend of 0,96 cent per share. General Electric 's dividend yield thus equals 4,11 percent. The average dividend yield of the diversified companies equals a limited 0,71 percent.

Newest target prices around 23 USD

ABN AMRO, KBC Securities and JP Morgan recently provided recommendations for the stock.

Based on the current number of shares General Electric 's market capitalization equals 219,1 billion USD.

On Tuesday the stock closed at 23,36 USD.

Price data General Electric 2007-2017

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