General Electric (GE) Stock Forecast: Not Rock Bottom Yet


General Electric stock has had a rough ride these last few years. Dropping from highs of $32 a share in July 2016, all the way down to currently just $6.71 a share.

Stock price is down more than 60% so far this year and falling.

To put this into perspective when Jack Welch stepped down as CEO of the company in 2001, GE stock prices were hovering around $50 a share.

GE shares have not been as low as $6.71 in the last 20 years, including in the 2008 financial crisis when share prices hit it’s lowest price at $7.06 a share.

Many investors had strung their hopes on the new CEO, Larry Culp, and while the stock did briefly rally upon his election, it continued on its precipitous journey south thereafter.

In fact Culp is being blamed by some for the downward speed and trajectory of GE stock; recently having made the decision to cut dividends down to just a penny a share, among other things. Signalling many investors to cut their losses short and many others to invest in more attractive stocks elsewhere.

GE has now lost more than 35% of its share value since it last released earnings reports in October 30th, 2018. While many expected the bottom to be reached. It has past expectations time and time again and there are no clear signs of it slowing down.

In fact the stock continues to lose value even while the market gains. False bottom after false bottom there seems to be no end in sight.

Earnings are down and analysts best expectations are for GE to publish its next earnings reports at $0.18 a share, a decline of 33.33%.

Culp, who is the first outsider CEO in General Electric’s history, has not managed to make a notable turnaround, as many had hoped.

For shareholders Culp was their best bet it seems, as he had successfully turned around a company before at his time at Danaher Corporation.

Some are hopeful that ex-CEO John Flannery’s decision to invest further in GE’s aviation segment will pay off. It has historically been their best performing segment.

However, for now at least, it looks like this GE’s stock is far from rock bottom yet.


Please enter your comment!
Please enter your name here