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Analytical review of the stocks of General Electric Company on 02.03.2016

General Electric Company, #GE [NYSE]
Industrial goods, diversified manufacturing, USA

Financial performance of the company:

Index – DJIA,
S&P 500; Beta – 1.19;
Capitalization – 302.06 В;
Return on asset – 0.30%;
Income - 1.68 B;
Average volume – 50.82 М;
P/E - 213.43;
ATR – 0.64.


Analytical review:

  • Over the last month the price of the company rose by 10.3%. It is expected that the quotes will continue to rise.
  • The company ranks the first on capitalization in the sector of Industrial goods among the issuers traded in the American stock market.
  • At the end of January the company reported for Q4 of the fiscal year 2015. According to the press-release in the reporting period company’s net profit rose by 2.5 times (from 2.51 billion USD to 6.30 billion USD). EPS (earnings per share) amounted to 0.26 USD, which exceeded analysts’ expectations by 26.8%.
  • At the press-conference company’s management said that in the reporting period company’s revenues has grown by 6.9% from 31.7 billion USD up to 33.9 billion USD due to tough program of cutting costs.
  • During the current fiscal year the company has doubled expenses on restructuring. The company is going to invest up to $3.4 billion trying to fight against significant decline in oil prices and slowdown of the global economy.
  • The company plans to continue to expand and diversify its business. Last year General Electric purchased industrial holding Alstom for 15.2 billion USD. The company plans to develop business in the service and manufacturing sectors of the nuclear industry.

Trading tips for CFD of General Electric Company

Long-term trading:
at the moment the issuer has exceeded resistance level of 29.40 USD. We recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed at the level of 28.35 USD.. Take profit can be placed in parts at the levels of 30.50 USD, 31.20 USD and 32.00 USD with the use of trailing stop.


Short-term trading: on the chart with the timeframe 15M the issuer has broken down and consolidated above the local resistance level of 29.50 USD. After breaking out and maintaining the mirrored support level of 29.50 USD and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 30.00 USD, 30.60 USD and 31.10 USD with the use of trailing stop.




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