General Electric has long been an investor favorite. The manufacturing company was, until 2019, a ‘”dividend aristocrat” — a stock that not only consistently paid a dividend, but also increased dividends for at least 25 consecutive years.
Since dropping off the prestigious list in 2019, the company has been undergoing some changes. Most notably, the conglomerate announced in July 2022 that it will split into three distinct companies by the end of 2024. Wall Street seems to approve of this plan, as the GE stock price is up year to date, putting it in the same ballpark with tech giants like Apple, Tesla and Meta Platforms. The question for individual investors is, is it time to buy GE stock?
General Electric Stock
General Electric (GE) is a 150-year-old company that has evolved from the first electric light bulb to jet engines and health care. Here are some key takeaways to know about GE stock:
- The company has a market capitalization of $121.92 billion.
- GE stock price closed at $111.67 on Aug. 22, 2023.
- Its 52-week range is $48.31 to $117.96, so it has more than doubled since its low in October 2022.
- Year to date, the stock has returned 70.99%.
- GE stock pays a quarterly dividend, and its current forward dividend is $0.32, or 0.29%.
- The company has a PE ratio of 12.09.
- The average analyst’s 12-month price target is $124.52, an 11.5% increase from the current price.
Apple (AAPL) has made many investors quite a bit wealthier since it went public in 1980, although it has had its ups and downs. Recently, however, like many tech stocks, there have been more ups than downs.
Year to date, Apple has returned 36.99% — a solid performance by any measure, yet just a bit over half of what GE investors have enjoyed. Here are a few other key points to know about Apple stock:
- Apple stock price closed at $177.23 on Aug. 22, 2023.
- It has a 52-week range of $124.17 to $198.23.
- Analysts predict, on average, that the price will increase 13.2% in the next 12 months, to $200.68.
- Apple stock pays a dividend, and the forward dividend is 0.96, with a yield of 0.55%.
- The company’s PE ratio is 29.74.
A relative newcomer to the tech space, Tesla (TSLA) was founded in 2003 and went public in 2010. The stock didn’t do much for the first ten years or so, but since 2020 it’s been a bit of a wild ride. Tesla began trading at about $30 per share (split adjusted), went up to over $400 in 2022 and closed at $233.19 on Aug. 22, 2023. Here are some other facts to know about Tesla stock:
- At the moment, Tesla is just north of the middle of its 52-week range of $101.81 to $313.80.
- Analysts predict a 2.8% increase in Tesla stock price in the next 12 months, with an average price estimate of $239.82.
- Year to date, the stock has returned 89.31%.
- Tesla does not pay a dividend.
- The low forward price estimate is one cause for concern regarding Tesla.
- Another concerning point is the company’s PE ratio — 67.59.
Meta Platforms Stock
Meta Platforms (META), formerly Facebook, was born in a Harvard dorm room. It has since grown to be the largest social network in the world. Its stock has been on an upward trajectory since its IPO in 2012, but the last two years have been a bit of a roller coaster.
In August 2021, the stock peaked at just under $400 a share, but by October 2022 it was under $90 a share. It has since rebounded significantly, closing at $287.50 on Aug. 22, 2023.
Here are some key takeaways to know about Meta Platforms stock:
- META’s volatility is reflected in the 52-week range, which is $88.09 to $326.20.
- Year to date, Meta has returned 138.99%, by far the best return of the four stocks listed.
- Looking ahead, the average analyst’s 12-month price target is $363.26, a 26.3% increase.
- Meta does not pay a dividend.
- The company’s PE ratio is 34.78.
Is GE Stock a Better Choice than Apple, Tesla or Meta?
No one has a crystal ball, so there’s no easy answer if GE stock is a better buy than others. A look at the fundamentals above would indicate that GE may be priced more attractively than Apple, Tesla or Meta.
There is another interesting thing about GE stock, and that is the spin-off of the three separate companies. The spinoff of GE Healthcare has already taken place. On Jan. 4, 2023, GEHC began trading on Nasdaq. Shareholders of GE received one share of GEHC for every three shares they held of GE.
The second GE spinoff has not yet been completed. It is expected to be done by the end of 2024. Presumably, it will be handled in a similar way to the first spinoff, with existing GE shareholders receiving shares of the new company in some proportion to their existing GE shares.
There is an argument to be made that this likelihood is already baked into the GE stock price today. In other words, since it is expected to happen, investors are willing to pay a higher price for GE stock. However, GE’s low PE ratio relative to the technology stocks indicates that it is still a good buy.
When assessing whether a particular stock is a good buy or not, be sure to consider your appetite for risk as well as how the stock fits into your portfolio as a whole.
FAQHere are the answers to some of the most frequently asked questions regarding GE stock.
- Is GE a good stock to buy now?
- GE stock is currently rated a buy by the analysts who are following it. Whether it is a good stock for you would depend on your personal financial situation and investment goals.
- Does GE stock have a future?
- Many think that GE stock has a future. It closed at $111.67 on Aug. 22, 2023. The average analyst’s 12-month price target is $124.52, which shows an 11.5% increase from the current price.
- What will GE stock be worth in 5 years?
- Predictions for future stock prices should always be taken with a grain of salt. With that in mind, according to Coin Price Forecast, GE stock will be worth $300 in 2028.
Information is accurate as of Aug. 22, 2023.
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- Coin Price Forecast. 2023. "GE Stock Forecast 2023 - 2025 - 2030."